IMF Staff completes Discussions for a US$115 Million Disbursement to Chad in response to the COVID-19 Pandemic
IMF News, April 8, 2020
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- IMF Staff completes Discussions for a US$115 Million Disbursement to Chad in response to the COVID-19 Pandemic
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- Published: April 8, 2020
Disbursement and approval
- IMF staff completed discussions for emergency access to the Rapid Credit Facility to help Chad address the economic challenges posed by the COVID-19 pandemic.
- IMF Executive Board’s approval of the request by the Chadian authorities will make available US$115 million to meet the urgent budgetary and balance of payments needs stemming from the COVID-19 pandemic.
- The Board’s consideration of the request is expected by mid-April.
- “IMF staff completed discussions with the authorities for a disbursement by mid-April of US$115 million.”
Economic impact and financing needs
- The outbreak of COVID-19 is described as “having a severe economic and social impact on Chad and could jeopardize the gains achieved in recent years under the current Extended Credit Facility (ECF) arrangement.”
- Economic activity is projected to slow sharply, and large fiscal and external financing needs have emerged.
- Containing a spread of the pandemic will put pressure on a weak health system and entail additional spending in the health sector, under the National Contingency Plan for the preparedness and response to the COVID-19 pandemic.
- Measures to prevent the spread of the virus have created hardship for households and businesses.
Government measures and economic plan
- The government has taken strong measures to halt the community spread of the virus.
- Actions taken include closing schools, suspending flights, and banning public gatherings.
- Authorities are preparing a comprehensive economic plan to upgrade the health system and contain the economic impact of the pandemic.
IMF engagement and objectives
- The IMF disbursement aims to allow the authorities to meet the urgent budgetary and balance of payment needs stemming from the deterioration of the global economic conditions and the spread of COVID-19 in Chad.
- “The authorities hope that the IMF financial support will help catalyze much needed financial support from other development partners.”
- The IMF team held working sessions with Mr. Tahir Hamid Nguilin, Minister of Finance and Budget, and a team from the Ministry of Finance and Budget.
- “The IMF team would like to thank the Chadian authorities for the candid and constructive discussions.”
Key statistics and dates
- Amount to be made available: US$115 million
- Expected Board consideration: mid-April
- Press Release No.: 20/139
- Publication date: April 8, 2020
IMF Press Release No. 20/139 — April 8, 2020