4.2 DESCRIPTIVE
ANALYSIS OF THE LEVEL OF PUBLIC DEBT IN TOGO
4.2.1 STRUCTURE OF THE DEBT AND
DESCRIPTIVE STUDY OF THE EXTERNAL DEBT OF TOGO
4.2.1.1 Structure
of the public debt, external debt structure and its evolution
4.2.1.1.1 Structure of public /
government debt
The Togolese public debt is divided in to domestic debt (35.84%)
and external debt (64.05%) at 31 December 2008. These figures are explained in
the table below:
Table 1: Distribution of the public debt Togo on
31/12/2008
|
CREDITORS
|
AMOUNT (in CFA Francs)
|
PERCENTAGE
|
|
DOMESTIC DEBT
|
396,507,600,000
|
35.84%
|
|
EXTERNAL DEBT
|
709,876,453,787
|
64.16%
|
|
TOTAL
|
1 106 384 053 787
|
100.00%
|
Source: Directorate of Public Debt
4.2.1.1.2 Structure and evolution of the
external debt
4.2.1.1.2.1 Structure of the external public debt
Togo`s external debt is mostly a long term debt. It comes
mainly from public loan for development and structural adjustment loans; and
then if need be from private origin (commercial debt).
Togo `s external debt is divided into multilateral debt,
bilateral debt with Paris Club, bilateral debt with non Paris Club and Private
debt owed to private banks.
4.2.1.1.2.2 Evolution of Togo's external debt between 1980
and 2008
Over that period, the external debt of Togo evolved in two
steps:
Graph 1: Evolution of the total external debt of Togo
between 1980 and 2008
Billion CFA francs
Evolution of the total external debt of Togo between
1980
Year
Source: Author based on data from the Directorate of
Public Debt
The first period runs from 1980 to 1993
- The outstanding debt has trended upward despite the
repayments, discounts and cancellations obtained. It moved from 213.4 to 349.4
billion CFA francs in 1990, which is an increase in real terms of 61%. This
increase is the result of the combined effects of three factors including:
1 - Capitalization of interests in the contexts of
consolidation agreements.
2 - New commitments of the State
3 - Changes in exchange rates of some major currencies
including the dollar, pound sterling, the Swiss franc, etc.
The second period runs from 1994 to 2008
- In 1994, following the devaluation of the CFA franc in
January, the loans outstanding went from single to double as the exposure is
denominated in foreign currency for nearly all loans. On January
1st, 1994, the loans outstanding were 349.4 billion CFA francs and
on 31 December 1994 it amounted to 707.5 billion CFA francs.
- From 1995 to 2008, the increase in debt was irregular and
can be explained by the breakdown of international cooperation with some
donors. It is however mitigated by the efforts made by the government refund,
cancellations from member countries of the Paris Club and the substantial
discounts that have been granted by friendly countries. December 31, 2008, the
outstanding external debt of Togo was about 709.88 billion CFA francs.
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