IMF Urges Creditors to Finalize Chad Debt Talks by End-March
IMF Urges Creditors to Finalize Chad Debt Treatment by March 31
(Bloomberg) -- The International Monetary Fund urged public and private creditors to complete a renegotiation of Chad’s loans by the end of March, a critical step to restore the sustainability of the nation’s debt.
The move follows a series of calls by the IMF and the World Bank for private creditors, including Glencore Plc, to agree on a restructuring of Chad’s debt on the same terms as those reached with its official creditors under a Group of 20 debt-relief initiative. About a third of Chad’s public external debt is owed to Glencore and other commercial lenders.
“Debt treatment under the G20 Common Framework and significant donor support are key for restoring debt sustainability and promote durable inclusive growth,” the Washington-based lender said in a statement on Tuesday. “In this respect, finalization of a debt treatment with both public and private creditors by end-March will be critical.”
Chad is one of the world’s poorest nations. Its economy suffered from the crash in oil prices in 2020, the coronavirus pandemic, security attacks and climate change that has stoked food insecurity. The central African country, which has little access to global capital markets, tapped Glencore in 2013 and 2014 for nearly $1.85 billion in two deals. After it ran into financial difficulties, Chad and Glencore agreed to restructure the loan twice.
In June, Chad reached a deal with its official creditors to restructure its external debt. In November, the IMF said Glencore had agreed to renegotiate a $1 billion oil-for-cash loan with Chad.
A Glencore spokesman declined to comment.
Chad reached an agreement with the IMF in December for a $570 million program to support the nation’s economic recovery. The economy contracted an estimated 1.1% last year and is projected to remain weak before gradually rebounding to growth of 3.6% in 2024, the IMF said.
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