CHAD – The republic of Chad is poised to receive an additional funding of US$68 million from the IMF to help cushion the economy against the raging COVID-19 pandic.

The development comes after the IMF released a statement noting that its staff have completed discussions for a second disbursement under the Rapid Credit Facility (RCF).

Earlier this year, the Executive Board of the International Monetary Fund (IMF) approved a disbursement under the Rapid Credit Facility (RCF) equivalent to SDR 84.12 million (about US$115.1 million, or 60 percent of quota).

During the disbursement, IMF had noted that Chad had taken strong actions to contain the spread of the pandemic and are currently putting together a comprehensive economic plan to upgrade the health system and contain the economic impact of the pandemic.

The IMF’s noted that its  support will make a substantial contribution to filling immediate external needs and preserving fiscal space for essential COVID-19-related health expenditure.

“This second emergency disbursement will allow the authorities to meet the urgent budgetary and balance of payment needs stemming from the deterioration of the global economic conditions and the containment of the COVID-19 pandemic,” noted Mr. Edward Gemayel, Mission Chief for Chad at the International Monetary Fund.

Chad’s economy has been severely impacted by the twin COVID-19 pandemic and terms of trade shocks.

Depressed commodity prices, weak external demand, and domestic containment measures are weighing on the outlook, and are causing significant adverse economic and social effects.

Economic activity is projected to contract sharply, with fiscal and external financing needs larger than estimated under the RCF approved in mid-April.

IMF noted that Chad’s authorities are taking decisive actions to limit the spread of the virus and its economic and social impact.

The Multilateral finance agency noted that Chad has implemented strong crisis containment and mitigation measures and are scaling up spending to bolster their health response.

The additional resources under the RCF will thus held the country alleviate pressing financing needs, including for health, social protection, and supporting the most impacted sectors and vulnerable groups.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE