IMF Board Approves $570 Mln Credit facility for Chad

 
The International Monetary Fund approved a three-year extended credit facility worth $570 million for Chad, the Fund said it is capping a process that required Chad to restructure all its official and commercial debt.

The approval allows the IMF to immediately disburse more than $78 million, the lender said in a statement on Friday.

The IMF had conditioned any new agreement with Chad on a restructuring of all its debt.

Reuters reported last month that Glencore, Chad’s largest private creditor, had offered assurances over the restructuring of about $1 billion in commercial debt.

Humanitarian“The Chadian economy continues to face significant humanitarian and social demands.

” The IMF’s Deputy Managing Director, Kenji Okamura.

He cited an expected increase in food insecurity and poverty, while a growing number of refugees fleeing social conflicts in neighboring countries complicates the humanitarian situation.

The Fund said restoring Chad’s debt sustainability relies on a “multi-year fiscal consolidation program, significant donor support, and deep debt restructuring under the G20 Common Framework.

”
In January, Chad was the first country to request a restructuring under new rules agreed last year by the G20 and the Paris Club of lenders.

China, France, India and Saudi Arabia, Chad’s official creditor committee, agreed in June to a restructuring under the G20 Common Framework.

Chad had restructured its debt twice, in 2015 and 2018.

 
 
 
Reuters/Shakirat Sadiq
IMF Board Approves $570 Mln Credit facility for Chad