COVID-19: Chad secures US$68 million from IMF to address pandemic challenges

14 Juillet 2020

Ndjamena, Chad, July 14 (Infosplusgabon) – Staff of the International Monetary Fund (IMF) and the authorities in Chad have completed discussions for a second disbursement under the Rapid Credit Facility (RCF) to help the north-central Africa country address economic challenges posed by the COVID-19 pandemic.

According to the IMF, Chad’s economy has been severely impacted by the twin Covid-19 pandemic and terms of trade shocks.

In a statement issued late Monday after the talks, the Fund said that 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.

The IMF Mission Chief for Chad at the IMF in Washington, DC, Mr. Edward Gemayel, said an additional US$68 million emergency disbursement under a new RCF by end-July 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,” Mr. Gemayel said..

“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.”

FIN/ INFOSPLUSGABON/ANK/GABON2020

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