IMF Executive Board Reviews Noncomplying Disbursements for Chad
IMF News, June 30, 2017
Source details
- Canonical URL
- IMF Executive Board Reviews Noncomplying Disbursements for Chad
Other formats
Bibliographic details
- Published: June 30, 2017
Executive Board findings
- The Executive Board regretted that when the combined third and fourth reviews were completed on November 11, 2016, the authorities did not accurately disclose to the IMF the accumulation of external debt payment arrears of about $46 million.
- This misreporting led to a significant breach of the continuous performance criterion on the non-accumulation of external payment arrears.
- The Board considered that the disbursements following the reviews were non-complying.
Causes identified
- The Executive Board noted that the incorrect reporting of external debt service information to the Fund reflected:
- a lack of coordination among the relevant government agencies, and
- weak debt management procedures.
Corrective actions and waiver decision
- The Executive Board welcomed the corrective measures taken by the authorities since the misreporting to address the root causes of the problem and to resolve the arrears.
- On this basis, the Executive Board granted Chad a waiver for nonobservance of the performance criterion on the accumulation of external payments arrears with respect to the non-complying disbursements.
- The Executive Board supported the proposed waivers given:
- the corrective measures taken by the authorities to address the root causes, and
- their plan to resolve the arrears.
Key statistics and dates
- Noncomplying disbursements reviewed: totaling SDR 44.41 million.
- Accumulation of external debt payment arrears not disclosed: about $46 million.
- Combined third and fourth reviews completed: November 11, 2016.
- Original ECF arrangement approved: August 1, 2014.
- Press release date: June 30, 2017.
Official statement (Acting Chair)
- Mr. David Lipton, First Deputy Managing Director and Acting Chair, summarized the Executive Board’s review and support for the waivers, citing misreporting of external arrears information and subsequent corrective actions.
IMF Press Release No. 17/258