IMF Staff Completes Discussions for an Additional US$68 Million Disbursement to Chad to Address the COVID-19 Pandemic
IMF News, July 13, 2020
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- Published: July 13, 2020
Disbursement details
- IMF staff completed discussions for a second disbursement under the Rapid Credit Facility (RCF).
- The second emergency disbursement amount is US$68 million.
- The disbursement is expected by end-July.
- The RCF was previously approved in mid-April.
Economic impact and outlook
- Chad’s economy has been severely impacted by the twin Covid-19 pandemic and terms of trade shocks.
- Depressed commodity prices, weak external demand, and domestic containment measures are weighing on the outlook.
- Economic activity is projected to contract sharply.
- Fiscal and external financing needs are larger than estimated under the RCF approved in mid-April.
Intended uses of additional resources
- The additional resources under the RCF will help alleviate pressing financing needs, including:
- health,
- social protection,
- supporting the most impacted sectors and vulnerable groups.
- The second emergency disbursement will allow the authorities to meet urgent budgetary and balance of payment needs stemming from the deterioration of global economic conditions and the containment of the COVID-19 pandemic.
Authorities’ policy actions and coordination
- The authorities have implemented strong crisis containment and mitigation measures and are scaling up spending to bolster their health response.
- The authorities hope that IMF financial support will help catalyze much needed financial support from other development partners.
- IMF staff thanked the Chadian authorities for candid and constructive discussions.
Meetings and participants
- The statement was made by Mr. Edward Gemayel, Mission Chief for Chad at the International Monetary Fund (IMF).
- The mission had working sessions with:
- Mr. Tahir Hamid Nguilin, Minister of Finance and Budget,
- Mr. Annour Mahamat Hassan, National Director of the BEAC,
- and a team from the Ministry of Finance and Budget.