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Extended credit facility: IMF recommendations for sustainable economic stability in Togo

13/09/2024
Source : ORISHAS-FINANCE
Categories: Economy/Forex Sectors

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Le International Monetary Fund (IMF) praised Togo's efforts to maintain robust growth. But the financial institution has identified several challenges that need to be addressed in order to ensure sustainable economic stability. Pour aider le pays a surmonté les difficultés, le IMF has approved a new agreement under the Extended Credit Facility (ECF). ) in March 2024, at the request of the Togolese authorities

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L'accord approuvé par le FMI en faveur du Togo forecasts a strengthening of fiscal revenues and the start of fiscal rebalancing, with generally favourable macroeconomic prospects. Le FMI points out that, over the long term, debt sustainability could deteriorate if Togo does not manage to rebalance its budget sufficiently while maintaining strong economic growth. Indeed, it encouraged Togo to pursue a fiscal rebalancing favorable to growth, with an emphasis on increasing tax revenues and improving revenue administration. In addition, the Fund emphasized the importance of making resources available for priority expenditures, particularly in the health and education sectors, in order to promote social inclusion. It is also recommended to improve the business climate to stimulate growth, attract more private investment and strengthen governance and anti-corruption frameworks.

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