Togo : Joint Bank-Fund Debt Sustainability Analysis, 2018 Update
Togo’s risk of external debt distress continues to be moderate with heightened overall risk of debt distress—unchanged from the previous Debt Sustainability Analysis (DSA) published in April 2017. Alternative scenarios and stress tests suggest, how...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/434151539632460778/Togo-Joint-Bank-Fund-Debt-Sustainability-Analysis-2018-Update http://hdl.handle.net/10986/30909 |
| Summary: | Togo’s risk of external debt distress
continues to be moderate with heightened overall risk of
debt distress—unchanged from the previous Debt
Sustainability Analysis (DSA) published in April 2017.
Alternative scenarios and stress tests suggest, however,
that external public debt could accumulate rapidly, pushing
Togo above the external debt-distress threshold for the
present value (PV) of public and publicly guaranteed (PPG)
debt-to-GDP. Togo’s domestic public debt burden remains high
and reflects among others, persistently high deficits,
materialized contingent liabilities and arrears
accumulation. Baseline projections show that Togo’s PV of
total PPG debt (external plus domestic) -to-GDP ratio will
reach the 38 percent benchmark by 2025, down from 73.1
percent in 2017 -with the bulk constituting domestic debt
obligations. This analysis highlights the need for sustained
fiscal consolidation, improved debt management, and
macroeconomic policies to reduce the level of public debt to
prudent levels over the medium term. |
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