World Bank, IMF announce $1.1b debt relief for Chad

The World Bank and International Monetary Fund (IMF) have both announced a $1.1 billion debt relief for Chad.

According to the religious debt relief organization, Jubilee USA Network, the money comes through the IMF and World Bank’s two major debt relief programmes: the Heavily Indebted Poor Country Initiative (HIPC) and the Multilateral Debt Relief Initiative (MDRI).

Chad is the 36th country to receive HIPC relief and the first since 2012. Chad is the fourth-least developed country in the world and more than half its population lives in poverty.

Chad reportedly owed $2.2 billion to foreign lenders as of 2013, and the country spent over $100 million annually paying off debt.

Prior to receiving debt relief, Chad owed around $800 million to the World Bank and $400 million to the African Development Bank, Jubilee Network noted.

Chad is also cited to owe approximately $500 million to other governments.

Chad would receive $18 million in debt relief from the IMF, nearly $600 million from the World Bank and $236 million from the African Development Bank, under the relief plan.

By Emmanuel K. Dogbevi