IMF Managing Director Welcomes the Statement by the Creditor Committee for Chad under the Common Framework for Debt Treatments

IMF News, June 16, 2021

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Canonical URL: IMF Managing Director Welcomes the Statement by the Creditor Committee for Chad under the Common Framework for Debt Treatments

Kristalina Georgieva, Managing Director of the IMF, welcomed the statement issued on June 16 by the Creditor Committee for Chad under the Common Framework for Debt Treatments beyond the DSSI.
The statement is described as a "key milestone" toward the debt relief that Chad urgently needs and as demonstrating concrete progress in implementing the G20’s Common Framework.
The Creditor Committee’s support for Chad’s envisaged IMF‑supported program provides the IMF with official financing assurances necessary for Board consideration of a Fund-supported program for Chad.
The Managing Director strongly endorsed the Creditor Committee’s call for private creditors to commit to negotiate debt treatments on comparable terms without delay.

Chad’s dire economic and financing situation is attributed to the combined shocks of:
- the COVID-19 pandemic,
- oil-price decline,
- climate change,
- terrorist attacks.
These shocks, together with the measures taken to contain the spread of the pandemic, have had a contractionary impact on the economy and exacerbated poverty, generating significant financing needs.
As a result, Chad’s debt has been assessed as unsustainable despite fiscal efforts and structural reforms under the envisaged IMF‑supported program, making a debt treatment critical to move forward.

On January 27, IMF staff completed staff level agreement with the Chadian authorities on a new medium-term program.
That program could be supported by IMF resources of about US$572 million under an Extended Credit Facility arrangement.
The new government on May 5 renewed its commitment to the policies underpinning the January 27 staff level agreement.
Approval of an IMF Executive Board‑supported program is expected to facilitate much needed financing from Chad’s main development partners to support the authorities’ IMF‑supported reform and stabilization program, and to help put the economy on a sustainable path of growth and poverty reduction.

The Creditor Committee’s support includes a commitment to negotiate debt restructuring terms.
Speedy steps by Chad’s private creditors, on comparable terms to the debt treatment under the Common Framework, are identified as essential to pave the way for IMF Executive Board consideration.
The Managing Director thanked members of the Creditor Committee for intensive work on Chad’s requested debt treatment.

Press Release No. 21/181
Dates referenced:
- June 16 (statement issued by the Creditor Committee; MD’s welcome statement)
- January 27 (IMF staff completed staff level agreement with Chadian authorities)
- May 5 (new government renewed its commitment to the January 27 staff level agreement)
IMF resource figure: US$572 million (under an Extended Credit Facility arrangement)
Members of the Creditor Committee for Chad include representatives of China, France, India, and Saudi Arabia.

Source: IMF Press Release No. 21/181