IMF Executive Board Completes Third Review under Extended Credit Facility for Chad and Approves US$48.6 Million Disbursement
IMF News, December 21, 2018
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- Published: December 21, 2018
Review outcome and disbursement
- Executive Board completed the third review of Chad’s program under the Extended Credit Facility (ECF) on December 21, 2018.
- Completion of the review enables the disbursement of SDR 35.05 million (about US$48.6 million).
- Total disbursements under the arrangement to date: SDR 140.2 million (about US$194.5 million).
- The Executive Board approved the authorities’ request for a waiver of the nonobservance of the continuous performance criterion on the accumulation of new external payment arrears by the government and nonfinancial public enterprises.
Program background and objectives
- Chad’s ECF arrangement was originally approved by the Executive Board on June 30, 2017 (Press Release No. 17/257) for SDR 224.32 million (about US$ 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,
- contribute to the regional effort to restore and preserve external stability for the Central African Economic and Monetary Union (CEMAC).
Executive statement — performance and reform progress
- Statement by Mr. Tao Zhang, Deputy Managing Director and Acting Chair:
- “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.”
Key policies, reform priorities, and recommendations
- Authorities’ priorities moving forward:
- continue efforts to further stabilize the fiscal position,
- energize non-oil growth,
- reduce banking sector vulnerabilities.
- Specific policy measures highlighted:
- maintaining control over the wage bill,
- increasing domestic revenue mobilization,
- improving public financial management.
- Expected outcomes from these measures:
- create sufficient space for increased spending in social sectors and public investment,
- pay down domestic debt and domestic arrears.
- Additional reform priorities:
- strengthening anti-corruption legislation,
- addressing weaknesses in some domestic banks.
Regional support and institutional reforms
- Chad’s program is supported by implementation of policies and reforms by regional institutions in:
- foreign exchange regulations,
- monetary policy framework,
- measures to support an increase in regional net foreign assets.
- These regional policies are described as critical to the program’s success.
Press Release No. 18/495, December 21, 2018 — International Monetary Fund