Washington, DC: An International Monetary Fund (IMF) team led by Julien Reynaud, Mission Chief for Chad, visited N’Djamena during November 13-21 to hold discussions on the first review of Chad’s Extended Credit Facility (ECF) program approved by the IMF Executive Board on July 25, 2025 for a total amount of SDR 455.65 million (about US$655 million or 325 percent of quota).
At the end of the mission, Mr. Reynaud issued the following statement:
“The Chadian authorities and the IMF staff have reached a staff-level agreement on the economic and financial policies to support the completion of the first review of the program under the ECF arrangement. This staff-level agreement is subject to IMF Management approval. Presenting the ECF arrangement’s first review to the IMF Executive Board will, however, also require securing regional policy assurances and confirming financing assurances.
“Economic activity remains robust, supported by stronger-than-expected activity in the non-oil sector. Real GDP grew by 5.0 percent in 2024, exceeding earlier projections, and high-frequency indicators point to continued expansion in 2025. Inflation turned negative in early 2025, dropping to -4.3 percent in November, largely driven by a decline in food prices following historical highs last year and improved agricultural production this year.
“Prospects are broadly positive, assuming continued reform implementation, the implementation of the NDP, and benign external conditions. The growth forecast for 2026 has been revised upward to 5.1 percent from 3.6 percent and with potential uptake, on account of continued strength in economic activity. Inflation is expected to gradually move to positive territories in 2026.
“Program performance at end-June 2025 was broadly satisfactory. All quantitative performance criteria were met, including those related to non-oil revenues, wages, and the non-oil primary balance. Two of the three indicative targets were achieved: the share of pre-authorized spending procedures (“DAO”) remained below the ceiling, and domestic payment arrears declined, including a CFAF 42 billion reduction in arrears to contractors. The authorities also cleared CFAF 51 billion in external arrears. The indicative target on net domestic financing was missed due to delays in restructuring state-owned banks.
“Overall fiscal revenues were broadly in line with projections through the first three quarters of 2025. Oil revenues have been lower than projected, pushed down by a large depreciation of the US dollar. However, non-oil revenues exceeded projections, supported by stronger economic activity and ECF-related tax measures. Spending execution was lower than projected for transfers and subsidies, as well as investment, partly reflecting reforms to strengthen expenditure controls and the rollout of the SIGFIP public finance management system.
“The 2026 budget approved by the National Assembly this week is consistent with the objectives and conditionality set out under the program. The authorities have ambitious objectives to create fiscal space for capital and social investments by increasing non-oil revenues and containing the wage bill.
“There have been delays in the implementation of some structural reforms, yet the authorities remain committed to their reform agenda. They are actively working on fixing their VAT credit system, continuing enhancing their management of the wage bill, improving budget execution and the settlements of their accounts, and on publishing the result of an oil revenues audit. Looking forward, they are committed to advancing the restructuring of the banking sector, continuing strengthening public financial management, governance and fiscal transparency, and developing the social safety nets. On the latter, progress towards the census and identification of vulnerable households scheduled for 2026 will be key to improving living conditions in Chad.
“Humanitarian needs have intensified: 160,000 additional Sudanese refugees have arrived since January 2025, bringing the total number of refugees and asylum seekers to 1.5 million. Protecting social and development spending remains a priority, including targeted programs to support vulnerable households and improve service delivery in line with the NDP.”
The IMF delegation met with the Head of the State, President of the Republic, Mr. Mahamat Idriss Deby Itno at the UAE–Chad Trade and Investment Forum in Abdu Dhabi; the Prime Minister and Head of Government, Mr. Allamaye Halina; the Minister of State, Minister of Finance, Budget, Economy, Planning, and International Cooperation, Mr. Tahir Hamid Nguilin; the Minister of Social Action, Solidarity, and Humanitarian Affairs, Ms. Zara Mahamat Issa; the Minister Delegate to the Minister of State responsible for Economy, Planning, and International Cooperation, Ms. Fatima Haram Acyl; the Secretary of State for Finance and Budget, Mr. Ali Djadda Kampard; the National Director of the BEAC, Mr. Idriss Ahmed Idriss; the President of the Court of Auditors, Ms. Zara Brahim Mahamat; the Inspector General of Finance, Mr. Moustapha Loukman; the Controller General of the Independent Anti-Corruption Authority, Mr. Ousmane Abderamane Djougourou; as well as senior officials from other government agencies and entities. The delegation also held productive discussions with representatives of the private sector. The IMF team would like to express its gratitude to the Chadian authorities and other counterparts for their warm hospitality and continued open and constructive engagement.
