Togo: Second Review Under the Arrangement Under the Extended Credit Facility, Requests for Waiver of Nonobservance of a Performance Criterion, Modification of Performance Criteria, Extension of the Arrangement, and Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for Togo

This paper highlights Togo’s Second Review under the Arrangement under the Extended Credit Facility, Requests for Waiver of Nonobservance of a Performance Criterion, Modification of Performance Criteria, Extension of the Arrangement, and Rephasing of Access. The authorities have implemented the IMF-supported program in an overall satisfactory manner in an environment marked by continued security challenges, tight financing conditions, and elevated global uncertainty. The authorities are encouraged to redouble their efforts at fiscal consolidation while preserving growth and strengthening inclusion. Risks from a further weakening of regional reserves have lessened, given their recent strong recovery, though still subject to downside risks. In this context, the authorities are contending with the challenging trade-offs between the need for fiscal consolidation to lower the debt burden and the need to preserve security, support growth, and enhance inclusion. Risks to the program are elevated, as a range of shocks as well as potential weaknesses in policy implementation could undermine progress toward program goals. The agreed corrective measures including the integration of a fiscal buffer of 0.25 percent of gross domestic product should help enhance resilience.