## Chad: Request for a Three-Year Arrangement Under the Extended Credit Facility

_IMF Staff Country Reports, September 16, 2014_

## Source details

**Canonical URL:** [Chad: Request for a Three-Year Arrangement Under the Extended Credit Facility](https://www.imf.org/en/publications/cr/issues/2016/12/31/chad-request-for-a-three-year-arrangement-under-the-extended-credit-facility-41919)

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## Bibliographic details
- Published: September 16, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498324519.002

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### Key issues — context and macroeconomic stance
- Chad is described as a fragile country with weak institutional capacity that needs to manage volatile and exhaustible oil revenues prudently to tackle large development needs.
- The country is enjoying a period of domestic political stability, while major regional security issues are imposing significant fiscal costs in both the short and medium term.
- Macroeconomic policy in recent years has achieved:
  - a gradual tightening of the underlying fiscal policy stance; and
  - a sizable increase in public investment.
- Satisfactory performance under an SMP in 2013 demonstrated the authorities’ commitment to improved macroeconomic management and set the ground for an upper credit tranche arrangement with the Fund.

### Policy framework and objectives
- The government’s medium-term economic program is anchored by the 2013-2015 National Development Plan (NDP) and aims to:
  - reinforce economic growth and make it more inclusive;
  - maintain macroeconomic stability; and
  - ensure fiscal sustainability.
- Given continued heavy dependence on volatile oil revenues that are projected to decline over the long-term and the currently high risk of debt distress, macroeconomic policy targets include:
  - a sustained fiscal adjustment;
  - a buildup of liquidity buffers; and
  - economic diversification.
- The reform agenda to underpin these objectives focuses on:
  - strengthening public financial and debt management; and
  - improving the business environment.

### Request for an Extended Credit Facility (ECF) arrangement
- The authorities request a three-year arrangement under the Extended Credit Facility (ECF) in the amount of SDR 79.92 million (120 percent of quota) in support of their medium-term economic program.
- The ECF arrangement is expected to:
  - address the country’s protracted balance of payments problems resulting from a trend reduction in oil revenues;
  - maintain adequate international reserves coverage; and
  - play a catalytic role for bilateral and multilateral assistance to Chad.
- The accompanying memorandum of economic and financial policies specifies the objectives of the program and the policy actions the government envisages to undertake during 2014–17.

### Subject focus and keywords (as listed)
- Subjects: Commodities, External debt, Oil, Oil, gas and mining taxes, Public debt, Public financial management (PFM), Taxes
- Keywords: Africa, authorities' memorandum, Chad, Chadian authorities, Chadian authority, CR, ECF arrangement, FDI inflow, fund assistance, gas and mining taxes, GDP, government, ISCR, Oil, Sub-Saharan Africa

*Source: Chad: Request for a Three-Year Arrangement Under the Extended Credit Facility (September 16, 2014).*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/chad-request-for-a-three-year-arrangement-under-the-extended-credit-facility-41919_