(Ecofin Agency) - Chad will receive new funding of $38.8 million from the International Monetary Fund (IMF), the institution said in a statement last week. The new investment follows a satisfactory completion of the fifth review of the arrangement under Extended Credit Facility granted to the country. IMF commends the government’s efforts which aimed at stabilizing the economy and supporting growth recovery.

As a reminder, Chad’s dependence on hydrocarbons had plunged its economy into crisis following the fall in oil prices and despite the good performance noted, IMF encourages authorities to continue to pursue a “prudent fiscal policy,” especially as elections approach and public spending is expected to increase.

“Fiscal consolidation efforts should give emphasis to strengthening domestic revenue mobilization, particularly by reducing exemptions and improving VAT collection, controlling the wage bill, and strengthening public financial management. Efforts to contain public debt vulnerabilities should be sustained by reducing domestic debt and strictly adhering to the zero limit on non-concessional borrowing,” the institution said.

Moutiou Adjibi Nourou