The International Monetary Fund (IMF) on Friday approved an immediate disbursement of $131.3 million to Togo, almost four times larger than what was previously foreseen, amid coronavirus global economic recession.
The additional cash is meant to address the human and economic implications of COVID-19 pandemic in Togo, IMF said in a statement received by TODAY NEWS AFRICA in Washington D.C.
The latest release of funds brings total disbursements to Togo under an Extended Credit Facility (ECF) loan to $ 336.4 million. Togo’s three-year arrangement of $239.3 million was approved on May 5, 2017.
An extended credit facility (ECF) allows the borrowing country to take out money over an extended period of time rather than reapplying for a loan each time it needs money.
The approval came after The Executive Board of the (IMF) completed the sixth and final review of Togo’s economic performance under ECF.
In completing the sixth review, the Executive Board also approved Togo’s request for an augmentation of access under the ECF arrangement of 48.7 percent of Togo’s quota, which translates to $97.1 million.
“Togo’s performance under the ECF-supported program has been broadly satisfactory. While the economic recovery was firming up, it has recently been hindered by the COVID-19 pandemic. The macroeconomic outlook is subject to a high degree of uncertainty,” said Mr. Mitsuhiro Furusawa, an IMF Deputy Managing Director and Acting Board Chair.
“The authorities are taking immediate actions to address the human and economic implications of the COVID-19 pandemic while safeguarding the hard-won fiscal achievements,” he said.