IMF Executive Board Approves a US$115.1 million Disbursement to Chad to Address the Covid-19 Pandemic
IMF News, April 14, 2020
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Bibliographic details
- Published: April 14, 2020
Disbursement approval and amounts
- The Executive Board approved a disbursement under the Rapid Credit Facility (RCF) equivalent to SDR 84.12 million (about US$115.1 million, or 60 percent of quota).
- Approval date: April 14, 2020.
Economic impact and macroeconomic context
- The outbreak of COVID-19 and the drop in international oil prices are having a severe economic and social impact on Chad.
- These shocks could jeopardize gains achieved under the current Extended Credit Facility (ECF) arrangement.
- Economic activity has slowed down and large financing needs have emerged.
- The shocks include: COVID-19 outbreak, collapse in international oil prices, and a deteriorating security situation.
Authorities’ actions and policy stance
- The authorities have taken strong measures to halt the community spread of the virus.
- They are scaling up health-related spending and preparing a comprehensive economic plan to upgrade the health system and contain the economic impact of the pandemic.
- Authorities are considering a set of economic measures to support households and businesses.
- Given the sudden nature of the shocks, the authorities will be temporarily relaxing the fiscal deficit to:
- allow for the scaling up of health care spending, and
- accommodate the impact of the sharp drop in oil prices.
- To safeguard debt sustainability, the authorities remain committed to the medium-term fiscal path and will implement needed adjustment measures as soon as the current crisis abates.
Use of IMF support and expected effects
- The IMF’s support is intended to:
- help Chad meet urgent balance of payment needs stemming from the deterioration of global conditions and the COVID-19 pandemic,
- make a substantial contribution to filling immediate external needs,
- preserve fiscal space for essential COVID-19-related health expenditure,
- help catalyze additional donor support.
- Additional financial assistance from development partners is described as critical to support government mitigation efforts.
Key statement from IMF management
- Statement by Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, following the Executive Board discussion:
- Chad is facing shocks from COVID-19, the collapse in international oil prices, and a deteriorating security situation, causing significant economic and social hardships.
- Economic activity has slowed and large financing needs have emerged.
- Authorities have taken strong measures to halt community spread, are scaling up health spending, and are considering measures to support households and businesses.
- Authorities will temporarily relax the fiscal deficit to scale up health care spending and accommodate the drop in oil prices, while remaining committed to the medium-term fiscal path and adjusting when the crisis abates.
- Much-needed financial assistance from development partners will be critical.
Media contact
- IMF Communications Department, MEDIA RELATIONS
- PRESS OFFICER: Gediminas Vilkas
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- @IMFSpokesperson
Source: IMF press release, April 14, 2020.
