Chad: Selected Issues

IMF Staff Country Reports, August 17, 2016

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Chad: Selected Issues

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Bibliographic details

• Published: August 17, 2016
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781475526899.002

Main findings

• The paper discusses the structure of the financial sector in Chad and describes the key macro-financial linkages.
• Macro-financial linkages in Chad are driven by a government sector that dominates economic activities in the more modern sectors of the economy, thanks to oil-related revenues.
• The main macro-financial linkages are indirect through the associated sharp fiscal adjustment and the government’s quest for additional financing.
• Direct credit risks linked to the oil sector appear limited.
• There seems to be a link between declining oil prices and deteriorating banking soundness indicators.
• Current economic conditions negatively affect private companies dependent on public contracts, potentially hitting the health of banks’ loan portfolios.

Policy-relevant implications

• Fiscal adjustment and government financing needs are central channels through which oil revenue shocks affect the financial sector.
• Monitoring of banking soundness indicators is important given the observed association with declining oil prices.
• The exposure of private companies to public contracts implies that public sector spending cuts can transmit to bank asset quality.

Subject coverage and keywords

• Subject: Commodities; Expenditure; Financial institutions; Oil; Oil, gas and mining taxes; Public investment and public-private partnerships (PPP); Public investment spending; Taxes; Treasury bills and bonds
• Keywords: Africa; Central Africa; Chad; Chadian authorities; CR; gas and mining taxes; Global; investment; investment efficiency; investment project; investment stock; ISCR; making investments function; Oil; Public investment and public-private partnerships (PPP); Public investment spending; securities; Sub-Saharan Africa; treasury bill; Treasury bills and bonds; Treasury securities

Content in this bundle

• Chad: Selected Issues; IMF Country Report No. 16/275; July 8, 2016
  • Chad: Selected Issues; IMF Country Report No. 16/275; July 8, 2016 (Markdown version)
  • Chad: Selected Issues; IMF Country Report No. 16/275; July 8, 2016 (PDF)
• Tchad: Questions generales; Rapport du FMI No 16/275; 8 juillet 2016
  • Tchad: Questions generales; Rapport du FMI No 16/275; 8 juillet 2016 (Markdown version)
  • Tchad: Questions generales; Rapport du FMI No 16/275; 8 juillet 2016 (PDF)