Chad seeks $630 million financial support from IMF

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DAKAR (Reuters) -Chad has reached an agreement with the International Monetary Fund for a fresh four-year financial support programme potentially worth about $630 million, under the fund’s Extended Credit Facility, the IMF said on Thursday. 

WHY IT’S IMPORTANT 

The requested support comes at a critical juncture for the oil-producing Central African nation which is looking to implement an ambitious national development plan amid declining oil prices, reduced public aid financing, and regional instability.

KEY QUOTE 

“Chad stands at a turning point in its history … The NDP will be implemented in a challenging global context. Conflicts and instability in the region, along with declining oil prices and reduced public development aid financing, will place additional pressure on the country’s budgetary resources,” IMF mission head Julien Reynaud said in a statement.

CONTEXT 

Following the conclusion of a political transition, Chad intends to implement a range of reforms and projects under its National Development Plan named “Chad Connection 2030.” 

BY THE NUMBERS 

Chad’s economy is estimated to have grown by 3.5% in 2024, down from 5% in 2023. Growth is projected to slow further to 3.3% in 2025, with a gradual increase expected over the medium term. The programme will aim to reduce Chad’s deficit to an average of 1.5% of GDP over the four years of its duration from over 4% currently. 

WHAT’S NEXT

The staff level agreement is subject to the approval of IMF’s executive board and the securing of the necessary financing assurances, the statement said. 

(Writing by Bate Felix; Editing by Matthew Lewis)