Press Release: Statement at the Conclusion of an IMF Mission to Chad
September 19, 2013Press Release No. 13/352
September 19, 2013
An International Monetary Fund (IMF) mission led by Mr. Mauricio Villafuerte visited N’Djamena during September 11 to 19, 2013 to conduct the first review under the Staff Monitored Program approved last July. The mission met with the Prime Minister; the Minister of Finance and Budget; the Minister of Economy, Planning and International Cooperation; the Minister of Energy and Petroleum; the Minister of Infrastructure and Equipment; the Minister of Urban Development and Habitat; the Secretary General of the Presidency; the National Director of the Bank of Central African States (BEAC) for Chad; other senior public administration officials; development partners; and the private sector.
At the end of the mission, Mr. Villafuerte issued the following statement:
“Macroeconomic developments this year are broadly as envisaged under the government’s economic program. Following a strong growth rate of of 9 percent in 2012, , real GDP growth is now projected to decelerate to 4 percent in 2013. This deceleration is due to a return to trend of agricultural production as well as unexpected technical problems in mature oil fields during the first half of the year, which will more than offset the positive impact of expanded production from new oil fields operated by other oil companies. However, the impact on fiscal revenues of lower oil export volumes is projected to be largely offset by higher than originally projected international oil prices. Thanks to lower food prices (a 6 percent fall between July 2012 and July 2013), the average 12-month inflation rate has fallen from 7.5 percent in December 2012 to 2 percent in August 2013.
“Policy performance under the Staff-Monitored Program (SMP) has been strong so far this year. The non-oil primary deficit target for end-June was met thanks to both higher non-oil tax revenue collections as well as strict control of spending. The government is on track to achieve its targeted reduction in the non-oil primary deficit to 18.1 percent of non-oil GDP for 2013 (from 19.2 percent of non-oil GDP in 2012). All other quantitative indicators for end-June were also met, with the exception of the ceiling on net domestic government financing. However, a significant part of the overrun is projected to be eliminated in coming months with a catching-up in the planned placement of local-currency securities in regional markets.
“The current draft 2014 budget appropriately targets a further reduction in the non-oil primary deficit, building on the gradual fiscal consolidation achieved in the last few years, and it is consistent with Chad’s poverty reduction strategy objectives (as defined in the National Development Plan 2013-15) and long-term fiscal sustainability.
“The mission also discussed the implementation of the government’s fiscal reform agenda, which aims at ensuring spending discipline and enhancing non-oil revenue mobilization. To support those reforms, technical assistance missions from the IMF’s Fiscal Affairs Department on revenue and customs administrations and public financial management also visited Chad during the last few weeks to discuss the authorities’ action plans in those areas and to make recommendations for the reforms’ next steps.
“The mission wishes to thank the Chadian authorities for their hospitality and constructive discussions.”
IMF COMMUNICATIONS DEPARTMENT