## IMF Executive Board Completes Third Review under Extended Credit Facility for Chad and Approves US$48.6 Million Disbursement

_IMF News, December 21, 2018_

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**Canonical URL:** [IMF Executive Board Completes Third Review under Extended Credit Facility for Chad and Approves US$48.6 Million Disbursement](https://www.imf.org/en/news/articles/2018/12/21/pr18495-chad-imf-exec-board-completes-3rd-rev-ext-cr-fac-approves-disburse)

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## Bibliographic details
- Published: December 21, 2018

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### Review outcome and disbursement
- Executive Board completed the third review of Chad’s program under the Extended Credit Facility (ECF) on December 21, 2018.
- Completion of the review enables the disbursement of SDR 35.05 million (about US$48.6 million).
- Total disbursements under the arrangement to date: SDR 140.2 million (about US$194.5 million).
- The Executive Board approved the authorities’ request for a waiver of the nonobservance of the continuous performance criterion on the accumulation of new external payment arrears by the government and nonfinancial public enterprises.

### Program background and objectives
- Chad’s ECF arrangement was originally approved by the Executive Board on June 30, 2017 (Press Release No. 17/257) for SDR 224.32 million (about US$ 312.1 million or 160 percent of Chad’s quota).
- The ECF-supported program aims to:
  - help Chad restore macroeconomic stability,
  - lay the foundation for robust and inclusive growth,
  - contribute to the regional effort to restore and preserve external stability for the Central African Economic and Monetary Union (CEMAC).

### Executive statement — performance and reform progress
- Statement by Mr. Tao Zhang, Deputy Managing Director and Acting Chair:
  - “Performance under the ECF-supported program has been satisfactory, reflecting strong commitment by the authorities.”
  - “Decisive implementation of the authorities’ program will help strengthen macroeconomic stability and support diversified and inclusive growth.”
  - “Progress is underway on the structural reform agenda, despite some delays.”

### Key policies, reform priorities, and recommendations
- Authorities’ priorities moving forward:
  - continue efforts to further stabilize the fiscal position,
  - energize non-oil growth,
  - reduce banking sector vulnerabilities.
- Specific policy measures highlighted:
  - maintaining control over the wage bill,
  - increasing domestic revenue mobilization,
  - improving public financial management.
- Expected outcomes from these measures:
  - create sufficient space for increased spending in social sectors and public investment,
  - pay down domestic debt and domestic arrears.
- Additional reform priorities:
  - strengthening anti-corruption legislation,
  - addressing weaknesses in some domestic banks.

### Regional support and institutional reforms
- Chad’s program is supported by implementation of policies and reforms by regional institutions in:
  - foreign exchange regulations,
  - monetary policy framework,
  - measures to support an increase in regional net foreign assets.
- These regional policies are described as critical to the program’s success.

*Press Release No. 18/495, December 21, 2018 — International Monetary Fund*

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## References

- [Tao Zhang](https://www.imf.org/en/About/senior-officials/Bios/tao-zhang)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility)
- [No. 17/257](https://www.imf.org/en/News/Articles/2017/06/30/pr17257-imf-executive-board-approves-arrangement-under-the-extended-credit-facility-for-chad)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/12/21/pr18495-chad-imf-exec-board-completes-3rd-rev-ext-cr-fac-approves-disburse_