Press Release No. 25/158

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

May 22, 2025

• This program will serve as an anchor for economic, financial, and social development policies in a difficult and uncertain international environment, based on the priorities that the Chadian government intends to develop in its National Development Plan, Chad Connection 2030.
• This agreement is subject to the approval of the IMF Executive Board and receipt of the necessary financing assurances.
• The program will aim to create the budgetary conditions needed to finance the new National Development Plan, promote governance, inclusive growth to reduce poverty, while addressing Chad's fiscal fragilities.

Washington, DC: At the request of the Chadian authorities, an International Monetary Fund (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.

At the end of the mission, Mr. Reynaud issued the following statement:

"IMF staff completed policy discussions with the authorities 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.

"Chad is at a turning point in its history. Following a political transition completed in February 2025, the Chadian authorities are keen to implement an ambitious plan of reforms and projects in their National Development Plan (NDP), Chad Connexion 2030. The NDP will focus on four key areas: (i) infrastructure development, (ii) social policy and essential public services, (iii) economic and industrial development, and (iv) improvement of the business environment.

"The NDP will be implemented in a challenging global environment. Conflict and instability in the region, as well as lower oil prices and reduced official development aid (ODA) funding will put further strain on the country's fiscal resources. The 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. The outlook hinges on the implementation of reforms supported by the proposed ECF and the frequency and magnitude of external and climate shocks.

"To ensure the sustainability of public finances and create fiscal space to finance the priorities of the NDP, the program aims to reduce the fiscal deficit by increasing non-oil revenues and containing expenditure in non-priority sectors. This will require new targeted measures in indirect taxation, public financial management, management of arrears, and 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. The goal is to reduce the fiscal deficit to 1.5 percent of GDP on average over the program horizon.

"Prudent and sustainable fiscal policy will create fiscal space for essential social and investment spending, which is critical to achieving resilient and inclusive growth and improving development outcomes. It will be important to increase the direct funding and coverage of the cash transfer and school feeding programs. To direct social and development spending to those most in need, the Unified Social Register (RSU) and national identification programs will be expanded.

"The Chadian authorities reaffirmed their commitment to implement structural reforms to improve the business climate, fiscal transparency, climate resilience, decentralization, and the fight against corruption and poverty. In the oil sector, an audit report of government revenues will be an important step towards greater transparency. The IMF program will support the government, in particular by providing a governance diagnostic assessment of economic and financial governance and the rule of law (link).

"The Chadian authorities are determined to address the restructuring needs of the state-owned banks, which will pave the way for the eventual disinvestment of the state.

"Chad should also continue to work closely with its regional partners to ensure financial stability within the CEMAC framework. It is essential that Chad implement the necessary policies to correct macroeconomic imbalances and consolidate 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.

"The IMF mission thanks the Chadian authorities for their warm welcome, the excellent collaboration and the constructive discussions. The 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; and 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. The mission also held discussions with representatives of the productive and financial sectors, civil society, and the technical and financial partners.”