IMF Reaches Staff-Level Agreement with Chad on a Four-Year Extended Credit Facility (ECF) Program

IMF News, May 22, 2025

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IMF mission led by Julien Reynaud visited N'Djamena from May 5-16 to conduct discussions on IMF support for the authorities' economic reform program.
Staff completed policy discussions on a potential new program under the Extended Credit Facility (ECF) to be supported by IMF resources of about US$630 million (SDR 455.65 million) over four years.
Agreement is subject to the approval of the IMF Executive Board and receipt of the necessary financing assurances.
End-of-mission press release notes these are preliminary findings; staff will prepare a report, subject to management approval, for presentation to the IMF's Executive Board for discussion and decision.

Program will serve as an anchor for economic, financial, and social development policies in a difficult and uncertain international environment.
Based on the priorities in the National Development Plan, Chad Connexion 2030, which will focus on four key areas:
- (i) infrastructure development,
- (ii) social policy and essential public services,
- (iii) economic and industrial development,
- (iv) improvement of the business environment.
Program aims to create the budgetary conditions needed to finance the new National Development Plan, promote governance, and inclusive growth to reduce poverty, while addressing Chad's fiscal fragilities.
Program will support:
- governance diagnostic assessment of economic and financial governance and the rule of law.
- an audit report of government revenues in the oil sector as a step towards greater transparency.

Chadian gross domestic product (GDP) is expected to have grown by 3.5 percent in 2024, compared to 5 percent in 2023.
Growth is expected to be 3.3 percent in 2025, and then gradually increase over the medium term.
Outlook hinges on the implementation of reforms supported by the proposed ECF and the frequency and magnitude of external and climate shocks.
The NDP will be implemented in a challenging global environment with risks including:
- conflict and instability in the region,
- lower oil prices,
- reduced official development aid (ODA) funding,

all of which will put further strain on the country's fiscal resources.

Program aims to reduce the fiscal deficit by increasing non-oil revenues and containing expenditure in non-priority sectors.
Required measures include:
- new targeted measures in indirect taxation,
- public financial management reforms,
- management of arrears,
- digitalization of the tax and customs administrations.
Controlling the size of the public sector workforce and restricting emergency spending procedures will help to control spending.
Target fiscal outcome: reduce the fiscal deficit to 1.5 percent of GDP on average over the program horizon.
Prudent and sustainable fiscal policy intended to create fiscal space for essential social and investment spending.

Priority to increase the direct funding and coverage of the cash transfer and school feeding programs.
To better target social and development spending, the Unified Social Register (RSU) and national identification programs will be expanded.

Chadian authorities reaffirmed commitment to implement structural reforms to:
- improve the business climate,
- enhance fiscal transparency,
- strengthen climate resilience,
- advance decentralization,
- fight corruption and poverty.
Authorities determined to address the restructuring needs of the state-owned banks, paving the way for eventual disinvestment of the state.

Chad should continue to work closely with its regional partners to ensure financial stability within the CEMAC framework.
Essential policies include correcting macroeconomic imbalances and consolidating external stability, including by ensuring that net foreign assets remain adequate.
Staff and the authorities expect that Fund financial support will pave the way for additional financial support from development partners.

Mission met with:
- Mr. Tahir Hamid Nguilin, Minister of State, Minister of Finance, Budget, Economy, Planning and International Cooperation;
- Mr. Idriss Ahmed Idriss, National Director of the BEAC;
- Ms. Ndolenodji Alix Naimbaye, Minister of Petroleum, Mines and Geology;
- Ms. Fatima Haram Acyl, Minister Delegate to the Minister of Finance, in charge of Economy, Planning and International Cooperation;
- Mr. Ali Djadda Kampard, Secretary of State for Finance and the Budget;
- Ms. Zara Ibrahim Mahamat Itno, President of the Court of Auditors;
- senior officials from the ministries of finance, petroleum, justice, agriculture, social action, national solidarity, and humanitarian affairs, INSEED, the General Inspectorate of Finance (IGF), the SHT, the Independent Anti-Corruption Authority (AILC), and the Court of Auditors.
Mission also held discussions with representatives of the productive and financial sectors, civil society, and the technical and financial partners.
IMF mission thanked the Chadian authorities for their warm welcome, excellent collaboration, and constructive discussions.

Press Release No. 25/158, May 22, 2025 — IMF Communications Department