As Ivory Coast battles economic headwinds, the Executive Board of the International Monetary Fund (IMF) has approved a 42-month arrangement under the Extended Credit Facility (ECF) for Togo.

The multilateral lender said the arrangement will provide financing of SDR 293.60 million which is about US$390 million, with an immediate disbursement of SDR 51.38 million or about US$68.3 million to the authority.

Togo continues to face headwinds, following a series of shocks in recent years, IMF said in an official statement released, noting that the ECF arrangement will help accelerate poverty reduction.

The credit support is expected to help Togo maintain macroeconomic stability, and catalyse further external financing, benefitting Togo and thereby contributing to the macroeconomic and external stability in the West African Economic and Monetary Union (WAEMU).

IMF said the authorities’ strong reform program aims to help maintain macroeconomic stability and accelerate poverty reduction by making growth more inclusive while strengthening debt sustainability, and conducting structural reforms to support growth and limit fiscal and financial sector risks.

Following a series of shocks in recent years, Togo continues to face headwinds, including more difficult access to financing following monetary policy tightening in advanced economies, a challenging security situation at the northern border, and persistent food insecurity compounded by climate change.