Press Release: Statement at the Conclusion of an IMF Staff Mission to Chad
September 25, 2009Press Release No. 09/327
September 25, 2009
An International Monetary Fund (IMF) staff mission led by Mr. Christian Josz visited the Republic of Chad during September 10-23, 2009, to conduct the first review under the Staff Monitored Program. The mission held constructive discussions with Prime Minister Yousouf Saleh Abbas, Finance Minister Gata Ngoulou, Infrastructure Minister Adoum Younousmi, Petroleum and Energy Minister Mahamat Nasser Hassane, as well as Christian Ngardoum, National Deputy Director of the Banque des Etats de l'Afrique Centrale, and other senior officials. The mission also met representatives of the private sector, trade unions, civil society and the donor community.
At the conclusion of the mission, Mr. Christian Josz, IMF Mission Chief for Chad, issued the following statement in N'djamena:
“Implementation of the staff-monitored program has been uneven in the period through end-August. Efforts to mobilize non-oil revenues have been successful, but public spending has exceeded targets by sizeable margins because of larger-than-budgeted outlays on security and on investment. As a result, the financial targets for 2009 are not expected to be met and the staff-monitored program will need to be re-examined.
“Against this background, the mission and the authorities agreed on the need for the government to take corrective action to minimize the gap between the 2009 budget outturn and the quantitative objectives set out under the program for end-December 2009. This will mainly entail some slowing of the pace of spending on non-priority investment projects.
“The mission reviewed the main elements of the 2010 draft budget currently under preparation within government, concluding that the proposal under consideration provided a sound aggregate framework for macroeconomic policy in 2010. The mission underscored the importance of aligning budget spending priorities with those articulated in the national Poverty Reduction Strategy; completing ongoing projects before starting new ones, and allocating adequate resources to make already completed infrastructures operational.
“The mission also held discussions on reform measures that could improve macroeconomic management. These included the need for a better oil revenue management system to make spending plans less dependent on volatile oil revenues and an action plan to improve public investment planning and procurement.
“The mission would like to thank the authorities for their excellent cooperation and the frank and constructive discussions."