07 January 2022: The Chad Creditors Committee met virtually on Wednesday December 22, 2021, to discuss the debt treatments of Chad under the Common Framework for Debt Treatments beyond the DSSI. The meeting was Co-chaired by the Kingdom of Saudi Arabia (represented by the Ministry of Finance) and France, with the participation of China and India, and in the presence of staff from the International Monetary Fund and the World Bank. The Common Framework, agreed upon by leaders during the Kingdom's presidency of the G20, which is also endorsed by the Paris Club, aims to address ongoing debt vulnerabilities on a case-by-case approach, with a view to facilitate timely and orderly debt treatment for DSSI-eligible countries.
The Committee issued the following joint statement at conclusion of the meeting:
STATEMENT
MEETING OF THE CREDITOR COMMITTEE FOR CHAD UNDER THE COMMON FRAMEWORK FOR DEBT TREATMENTS BEYOND THE DSSI
The creditor committee for Chad formed by China, France, India and Saudi Arabia and co-chaired by France and Saudi Arabia (hereinafter “the creditor committee") met virtually on December 22, 2021, in presence of the IMF staff and the World Bank staff.
The creditor committee welcomed the approval of the IMF upper credit tranche (UCT) program by the Executive Board on December 10, 2021, for which the June statement of the creditor committee was critical. The approval of the program for Chad by the IMF Executive Board addresses Chad's urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to provide quick financial support to Chad to meet its long-term financial needs.
As stated previously, creditor committee members are committed to negotiate with the Republic of Chad terms of a restructuring of their claims, consistent with their national laws and internal procedures, in a timely, orderly and coordinated manner.
The creditor committee reiterated that the Chadian authorities are expected to seek from all private and other official bilateral creditors debt treatments on terms at least as favorable as those being considered by the creditor committee, in line with the comparability of treatment principle. Consequently, creditor committee members stressed the importance for all private and other official bilateral creditors to negotiate in good faith in order to conclude such debt treatments with Chad as soon as possible and noted the commitment of Chad's main private creditor to engage in good faith discussions for restructuring its claims. The creditor committee remains ready to have an engagement with private creditors, prior to the signature of the MoU with Chad.
Background notes
1. The creditor committee for Chad was formed on April 15, 2021, in application of “Common
Framework for Debt Treatments beyond the DSSI" endorsed by the G20 and the Paris Club in November 2020.
2. The members of the creditor committee for Chad are representatives of the governments of China, France, India and Saudi Arabia. France and Saudi Arabia co-chair the creditor committee.
Observers at the meeting were representatives of the International Monetary Fund and the World Bank Group.