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Togo - Reform and Governance Support Programme (PARG) - Project Completion Report (PCR)

15-Jan-2014

The balance of payments support was appropriate for a rapid intervention by the Bank in Togo. PARG met the eligibility criteria for balance of payments support outlined in the Bank’s relevant policy document and Togo fulfilled the general condition precedent as defined by the Bank for the use of this instrument.The rationale for the use of the rapid disbursement method at the macroeconomic level was also justified by the non-viable balance of payments deficit arising from cyclical or structural causes. The structural deficit balance of payments had been worsened by cyclical problems. The external account balance deterioratedfrom-5.3% of GDP to-6.4% between 2005 and 2007. At the cyclical level: (i) the food crisis increased food imports considerably; (ii) the oil crisis increased factors of production costs of export and re-exports; (iii) the 2007 and 2008 floods destroyed a significant portion of agricultural exports; and lastly; (iv) electricity outages slowed down manufacturing and agricultural production, which impacted negative lyon exports.

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