IMF praises Chad’s debt restructuring deal

The International Monetary Fund (IMF) Managing Director Kristalina Georgieva hailed Wednesday the progress made in restoring debt sustainability globally including Chad, at a meeting of the G20 Finance Ministers and Central Bank Governors in India, “Zawya reports”.
The central African country in November 2022 reached an agreement with its creditors, notably Swiss commodities trader Glencore, paving the path for more IMF support but falling short of eliminating the country’s $3 billion in external debt.
The deal was the first to be reached under the Common Framework, established by the Group of 20 major economies in late 2020 to assist impoverished nations in dealing with the aftermath of the COVID-19 pandemic.
“And so we have work to do,” Georgieva said. “Our world may be wealthier today than when the current international financial architecture was established, but it is also more fragile. The global economy has shown resilience, but this resilience is not evenly distributed”, she said.
Chad, according to the IMF presents a favorable “2023 outlook” but subject to significant risks. The Washington-based institution also forecasts that growth is expected to increase further to reach 4 percent in 2023, while inflation would remain elevated.
“After the 2022 rebound, oil production is expected to increase significantly (to 6.3 percent). Growth in the non-oil sector would also increase to 3.5 percent in 2023, owing mainly to the recovery of agricultural production, following the 2022 floods. Risks to the outlook include: security challenges, particularly those related to the conflict in Sudan; climate-related risks; and the risk of a higher-than projected decline in oil prices,” IMF said after the completion of a mission to Chad for discussions on the third review of the Extended Credit Facility Arrangement.