Press Release No. 18/495

IMF Executive Board Completes Third Review under Extended Credit Facility for Chad and Approves US$48.6 Million Disbursement

December 21, 2018

• Performance under the ECF-supported program has been satisfactory and the fiscal position continues to improve reflecting strong commitment by the authorities.
• Further reform efforts are needed to support the economic recovery.
• Chad’s program is supported by the implementation of policies and reforms by the regional institutions which are critical to its success.

On December 21, 2018, the Executive Board of the International Monetary Fund (IMF) completed the third review of Chad’s economic and financial program supported by an Extended Credit Facility (ECF) arrangement. The completion of the review enables the disbursement of SDR 35.05 million (about US$48.6 million), bringing total disbursements under the arrangement to SDR 140.2 million (about US$194.5 million).

The Executive Board also approved the authorities’ request for a waiver of the nonobservance of the continuous performance criterion on the accumulation of new external payment arrears by the government and nonfinancial public enterprises.

Chad’s ECF arrangement was originally approved by the Executive Board on June 30, 2017 (see Press Release No. 17/257) for SDR 224.32 million (about US$ 312.1 million or 160 percent of Chad’s quota). The ECF-supported program aims to help Chad restore macroeconomic stability, lay the foundation for robust and inclusive growth, and contribute to the regional effort to restore and preserve external stability for the Central African Economic and Monetary Union (CEMAC).

Following the Executive Board discussion, Mr. Tao Zhang, Deputy Managing Director and Acting Chair, made the following statement:

“Performance under the ECF-supported program has been satisfactory, reflecting strong commitment by the authorities. Decisive implementation of the authorities’ program will help strengthen macroeconomic stability and support diversified and inclusive growth. Progress is underway on the structural reform agenda, despite some delays.

“Moving forward, the authorities are determined to continue their efforts to further stabilize the fiscal position, energize non-oil growth, and reduce banking sector vulnerabilities. Key policies in this regard include maintaining control over the wage bill, increasing domestic revenue mobilization, and improving public financial management. This would help create sufficient space for increased spending in social sectors and public investment, and to pay down domestic debt and domestic arrears. Strengthening anti-corruption legislation and addressing weaknesses in some of the domestic banks are also key.

“Chad’s program is supported by the implementation of supportive policies and reforms by the regional institutions in the areas of foreign exchange regulations and monetary policy framework and to support an increase in regional net foreign assets, which are critical to the program’s success.”