WASHINGTON D.C., United States of America, July 15, 2020/ — IMF staff completes discussions for a second disbursement under the Rapid Credit Facility (RCF) to help Chad address the economic challenges posed by the COVID-19 pandemic; Chad’s economy has been severely impacted by the twin COVID-19 pandemic and terms of trade shocks; The additional resources under the RCF will help alleviate pressing financing needs, including for health, social protection, and supporting the most impacted sectors and vulnerable groups.
Mr. Edward Gemayel, Mission Chief for Chad at the International Monetary Fund (IMF), made the following statement:
“IMF staff completed discussions with the authorities for a disbursement by end-July of an additional US$68 million under a new RCF. 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.”
“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.”