Chad: First and Second Reviews Under the Extended Credit Facility Arrangement, Requests for Waivers of Nonobservance of Performance Criteria and Modification of Performance Criteria-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Chad

This paper focuses on Chad’s First and Second Reviews under the Extended Credit Facility Arrangement, Requests for Waivers of Nonobservance of Performance Criteria and Modification of Performance Criteria. Chad is the first country to reach a debt treatment agreement with official and private creditors under the G20 Common Framework. This agreement provides Chad with adequate protection against downside risks while bringing the risk of debt distress to moderate by the end of the IMF-supported program. While high oil revenues have improved the government’s financial position, Chad continues to face considerable challenges, including food insecurity, oil price volatility, climate change, and security issues. Continued reform efforts are needed to enhance growth, poverty reduction, and resilience. Continued reform efforts are needed to enhance growth, poverty reduction, and resilience. Fiscal consolidation efforts remain key to Chad’s efforts to ensure debt sustainability while creating the fiscal space necessary to meet its considerable social and investment spending needs. The authorities will continue to implement measures aimed at enhancing domestic revenue mobilization, containing the wage bill, and streamlining nonpriority expenditures, such as fuel and electricity subsidies.