IMF APPROVES $625M LOAN FOR CHAD, UNLOCKS $38.5M TO DRIVE GROWTH

Chad secures $625M IMF loan to boost fiscal stability, fund development, and support refugees, starting with a $38.5M disbursement.

Chad imf loan Fiscal sustainability National development plan
IMF
IMF


The International Monetary Fund (IMF) has approved a $625 million, four-year lending program for Chad, with an initial disbursement of $38.5 million, the Fund announced on Friday, July 25.

The program, finalized in May 2024 between Chadian officials and IMF staff, is aimed at promoting fiscal sustainability, expanding social spending, and fostering private sector growth. It is a crucial part of Chad’s broader $30 billion national development plan, which seeks to transform the country’s economy through strategic investments and governance reforms.

Implemented under the IMF’s Extended Credit Facility (ECF), the program supports Chad’s efforts to reduce poverty, improve public financial management, and create a conducive environment for business. It also seeks to catalyze investments in critical infrastructure, including roads, electricity, and digital systems.

Chad’s Finance Minister, Tahir Hamid Nguilin, had earlier stated that the national development blueprint, scheduled for launch in Abu Dhabi in September, is designed to drive 8% annual economic growth while maintaining a sustainable debt-to-GDP ratio of 32% through 2030.

This IMF-backed initiative comes at a time when Chad is grappling with falling oil revenues, declining foreign aid, and persistent regional instability. The funding is expected to strengthen the country’s social safety nets, particularly for vulnerable populations and over 600,000 Sudanese refugees currently hosted in Chad under increasingly difficult conditions due to global funding shortfalls.

The program also emphasizes structural reforms to improve the business climate, aiming to unlock private sector-led job creation. Analysts have described the loan as a lifeline for Chad, highlighting its potential to stabilize the economy, support humanitarian efforts, and attract further investment despite challenges such as jihadist threats and climate vulnerabilities.

The IMF commended Chad’s reform commitments, underscoring the program’s potential to foster inclusive development and long-term economic transformation. With the first disbursement in place, Chad is positioned to implement its vision for growth, stability, and social progress.

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