Togo: public debt “under control” at 59% of GDP at the end of June 2021

Togo’s public debt remains “under control” and represented 59% of gross domestic product (GDP) at the end of June 2021, the authorities announced on October 7, 2021 at a meeting of the National Credit Council (CNC). .

In 2020, the overall outstanding amount was estimated at 2,555.45 billion CFA francs, or 59.42% of the GDP calculated after a rebasing. It was then made up of 80.50% of debts denominated in non-fluctuating currencies (FCFA and Euro) and influenced by the fluctuations of certain major currencies such as the American dollar (6.88%), the yuan renminbi CNY (6.35% ), Special Drawing Rights (SDRs), units of account of the Islamic Development Bank (IDB) and the African Development Bank (ADB) (5.11%).

Last March, the AfDB announced, in its annual document entitled “Economic Outlook in Africa”, that the risk of the country’s debt distress was “moderate”, and that “the fiscal consolidation implemented from 2017 to 2019 and the restructuring of the debt to lengthen the maturities of the loans made it possible to reduce the debt / GDP ratio from 80% in 2016 to 68.67% in 2019 ”.

For its part, in its 2020 annual report, the Central Bank of West African States (BCEAO) noted that Togo presented a risk of high external debt distress for total debt. The ratio of outstanding external debt to GDP stood at 17.7% in 2019 against 15.2% in 2018.

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