Reuters
Reuters published the following article:
The International Monetary will present an updated macroeconomic framework to all of Chad's creditors by the end of January, an IMF spokesperson said on Monday, amid pressure for creditors to finalize a debt restructuring plan with the African country.
"We can confirm that the IMF is planning to present an updated macroeconomic framework to all creditors by the end of the month," an IMF spokesperson told Reuters.
The global lender on Tuesday said that public and private creditors needed to finalize a debt restructuring plan with Chad by the end of March to restore durable economic growth amid worsening conditions in the country.
"The aim is to get an MOU with all creditors by end of March, early April," the spokesperson said.
A source close to the debt restructuring negotiations told Reuters that following the presentation to creditors, the IMF and Chad would hold a series of separate meetings with official and private creditors to discuss options to overhaul the country's debt burden.
Creditors would also receive updated debt sustainability analysis calculations, based on the new economic projections, according to the source.
In January 2021, Chad became the first country to request a debt restructuring under the G20 common framework agreed in 2020 by China and other Group of 20 members and the Paris Club of major creditor countries, while Zambia and Ethiopia followed suit asking for relief shortly after. The framework is designed to allow countries to overhaul their debt burdens rather than just grant temporary debt relief.
However, progress has been slow with the death of Chad's president in April, the escalation of the conflict in Ethiopia and tensions between Zambia's Chinese lenders and Eurobond holders leading to some delays.
"Chad will be the first country coming through the G20 common framework process," the source familiar with the negotiations said.
One third of Chad's external debt burden is commercial debt, nearly all of which was contracted in oil-for-cash deals dating back to 2013 and 2014 by Glencore and now owed to the Swiss-based miner and trader and a consortium of lenders which includes 16 institutions.
Some creditors have raised questions over how much debt relief Chad still needed, pointing out that oil prices have shot up from just over $16 per barrel in January 2021 to around $85 per barrel.
However, in its latest statement following a visit to the country, the IMF said "Chad's economic and financial situation and medium-term prospects had worsened due to a series of long-lasting shocks since the onset of the COVID-19 pandemic."
Glencore did not immediately respond to a request for comment.
The International Monetary will present an updated macroeconomic framework to all of Chad's creditors by the end of January, an IMF spokesperson said on Monday, amid pressure for creditors to finalize a debt restructuring plan with the African country.
"We can confirm that the IMF is planning to present an updated macroeconomic framework to all creditors by the end of the month," an IMF spokesperson told Reuters.
The global lender on Tuesday said that public and private creditors needed to finalize a debt restructuring plan with Chad by the end of March to restore durable economic growth amid worsening conditions in the country.
"The aim is to get an MOU with all creditors by end of March, early April," the spokesperson said.
A source close to the debt restructuring negotiations told Reuters that following the presentation to creditors, the IMF and Chad would hold a series of separate meetings with official and private creditors to discuss options to overhaul the country's debt burden.
Creditors would also receive updated debt sustainability analysis calculations, based on the new economic projections, according to the source.
In January 2021, Chad became the first country to request a debt restructuring under the G20 common framework agreed in 2020 by China and other Group of 20 members and the Paris Club of major creditor countries, while Zambia and Ethiopia followed suit asking for relief shortly after. The framework is designed to allow countries to overhaul their debt burdens rather than just grant temporary debt relief.
However, progress has been slow with the death of Chad's president in April, the escalation of the conflict in Ethiopia and tensions between Zambia's Chinese lenders and Eurobond holders leading to some delays.
"Chad will be the first country coming through the G20 common framework process," the source familiar with the negotiations said.
One third of Chad's external debt burden is commercial debt, nearly all of which was contracted in oil-for-cash deals dating back to 2013 and 2014 by Glencore and now owed to the Swiss-based miner and trader and a consortium of lenders which includes 16 institutions.
Some creditors have raised questions over how much debt relief Chad still needed, pointing out that oil prices have shot up from just over $16 per barrel in January 2021 to around $85 per barrel.
However, in its latest statement following a visit to the country, the IMF said "Chad's economic and financial situation and medium-term prospects had worsened due to a series of long-lasting shocks since the onset of the COVID-19 pandemic."
Glencore did not immediately respond to a request for comment.
