The International Monetary Fund approved a three-year extended credit facility worth $570 million for Chad, the Fund said on Friday, capping a process that required Chad to restructure all its official and commercial debt.
According to the International Monetary Fund, the approval allows for immediate disbursement of more than $78 million
The IMF had conditioned any new agreement with Chad on a restructuring of all its debt. Glencore, Chad’s largest private creditor, had offered assurances over the restructuring of about $1 billion in commercial debt.
“The Chadian economy continues to face significant humanitarian and social demands,” said Kenji Okamura, the IMF’s deputy managing director. He cited an expected increase in food insecurity and poverty, while a growing number of refugees fleeing social conflicts in neighbouring 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 restructure under the G20 Common Framework.
Chad had restructured its debt twice, in 2015 and 2018.