IMF Managing Director Welcomes Debt Treatment Agreement Reached by Chad and its Creditors under the G20 Common Framework
IMF News, November 13, 2022
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Bibliographic details
- Published: November 13, 2022
Announcement
- Press Release No. 22/379
- Date: November 13, 2022
- Issued by: IMF Communications Department, MEDIA RELATIONS
- PRESS OFFICER: Nicolas Mombrial
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
Key findings from the Managing Director’s statement
- Chad and its external creditors have reached an agreement on the treatment of Chad’s debt under the Group of 20 Common Framework.
- The official creditor committee comprises China, France, India, and Saudi Arabia, and the agreement also involves private creditors.
- This is the first Common Framework accord.
- The agreed debt treatment is consistent with the objectives of the IMF-supported program that was approved in December 2021.
- The debt treatment:
- reduces the risk of debt distress at a time when the global outlook is highly uncertain, and
- provides protection against downside risks, including lower oil prices.
- Once formalized, the debt treatment should pave the way for the completion of the first and second reviews of Chad’s three-year Extended Credit Facility Arrangement.
- Completion of those reviews is expected to help put Chad’s economy on a path toward sustainable economic growth and poverty reduction.
Implications and next steps highlighted by the Managing Director
- The debt treatment agreement lowers immediate debt distress risk and strengthens resilience to downside shocks (explicitly including lower oil prices).
- Formalization of the debt treatment is required to enable completion of the first and second reviews of the three-year Extended Credit Facility Arrangement.
- The IMF will continue to collaborate with Chad during the implementation period.
Direct quote from Kristalina Georgieva, Managing Director
- “I welcome the announcement by Minister of Finance Tahir Hamid Nguilin that the authorities have agreed with their external creditors on the treatment of Chad’s debt.
- “We recognize the work by the official creditor committee comprising China, France, India, and Saudi Arabia, as well as private creditors, to reach this agreement and secure the first Common Framework accord. We have been waiting for this day.
- “The agreed debt treatment is consistent with the objectives of the IMF-supported program that was approved in December 2021. It reduces the risk of debt distress at a time when the global outlook is highly uncertain, and provides protection against downside risks, including lower oil prices. Once formalized, the debt treatment should pave the way for the completion of the first and second reviews of Chad’s three-year Extended Credit Facility Arrangement , which will help put Chad’s economy on a path toward sustainable economic growth and poverty reduction.
- “I look forward to continuing our productive collaboration with Chad in the period ahead.”
IMF Press Release No. 22/379 — November 13, 2022