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IMF resumes lending to Chad following Glencore debt deal

Reuters  |  DAKAR 

(Reuters) - The said it was resuming loan disbursements to after the Central African reached an agreement in principal to restructure its more than $1 billion debt to and four banks.

and the banks lent Chad's firm about $1.45 billion in 2014 to be repaid with but global crashed shortly thereafter.

The debt has eaten up nearly all of Chad's -- its main source of revenue -- prompting tense negotiations that began last year about restructuring.

The agreement struck in February extends the maturity of the debt and provides a two-year grace period on principal payments.

The IMF approved about $300 million in credit to at the end of June and initially released $48.8 million. But a decision on the next disbursement was delayed as the government's talks with its creditors dragged on.

In a statement late on Friday, the IMF said it would immediately disburse about $51 million. Mitsuhiro Furusawa, the Fund's deputy managing director, said the February deal "is expected to yield the necessary financing for the program and firmly restore external debt stability".

The IMF also said it expects Chad's to grow by 3.5 percent this year, after it contracted by 3.1 percent last year, assuming the terms of the agreement are implemented.

(Reporting by Aaron Ross; editing by Clelia Oziel)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, April 14 2018. 19:30 IST