July 14, 2024

Chad to soon receive additional $68 million loan money from IMF to respond to COVID-19

Chad would soon receive an additional $68 million loan money from the International Monetary Fund (IMF) to respond to COVID-19 economic fallout.

The IMF in a statement on Monday announced that its staff had completed discussions with Chad for a disbursement by July ending of an additional $68 million under a new Rapid Credit Facility (RCF) arrangement.

Mr. Edward Gemayel, Mission Chief for Chad at the IMF, said “this second emergency disbursement will allow the authorities to meet the urgent budgetary and balance of payment needs stemming from the deterioration of the global economic conditions and the containment of the COVID-19 pandemic.”

According to him, Chad is facing serious challenges from 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, and are causing significant adverse economic and social effects. Economic activity is projected to contract sharply, with fiscal and external financing needs larger than estimated under the RCF approved in mid-April.

“The authorities are taking decisive actions to limit the spread of the virus and its economic and social impact. They 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.”

“The IMF team would like to thank the Chadian authorities for the candid and constructive discussions. 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,” Gemayel added.

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