IMF okays $149.3m disbursement to Chad
The International Monetary Fund has completed the first and second reviews of the extended credit facility arrangement with Chad, providing the country with access to SDR 112.16 million (about US$149.3 million).
The IMF announced this in a statement on Friday, saying this will help put Chad’s economy on a path toward sustainable economic growth and poverty reduction.
The SDR 112.16 million will bring total disbursements under the arrangement to SDR 168.24 million (about US$224 million).
“Chad is the first country to reach a debt treatment agreement with official and private creditors under the G20 Common Framework. This agreement provides Chad with adequate protection against downside risks while bringing the risk of debt distress to moderate by the end of the IMF-supported program,” it said.
Chad’s three-year ECF arrangement was approved on December 10, 2021, for SDR 392.56 million (about US$570.75 million at the time of program approval or 280 percent of quota) to help meet Chad’s large balance-of-payments and budgetary needs, including by catalysing financial support from official donors.
“Chad continues to face considerable challenges. Higher oil revenues improved the government’s cashflow position. However, the pandemic remains a concern while last year’s poor crop, Russia’s war in Ukraine, and the recent floods have exacerbated food insecurity,” Mr Kenji Okamura, deputy managing director and acting chair of IMF Executive Board, said.
He said the prolongation of the political transition has heightened social tensions while the security situation remains volatile. Reflecting in part these challenges, quantitative performance under the program has been mixed, although there has been significant progress on structural reforms.
“The debt treatment agreement reached with official and private creditors under the G20 Common Framework—the first in its kind—provides Chad with adequate protection against downside risks while bringing the risk of debt distress to moderate by the end of the program, as required under the IMF’s exceptional access policies,” he added.
