The International Monetary Fund has approved a $625 million loan package for Chad under a 48-month Extended Credit Facility (ECF), aimed at stabilizing the country’s economy and supporting long-term development and governance reforms.

The program, equivalent to 325 percent of Chad’s IMF quota, was endorsed by the Fund’s Executive Board and includes an immediate disbursement of $38.5 million. The facility is designed to address the country's persistent balance-of-payments pressures and support the implementation of its National Development Plan 2025–2030.

The IMF said the arrangement is structured around three core pillars: ensuring fiscal sustainability to unlock development financing, expanding targeted social spending, and strengthening governance and the business environment. The plan comes at a time when Chad faces growing fiscal and external vulnerabilities, exacerbated by volatile oil revenues, a surge in refugee flows from neighboring Sudan, and reduced donor support.

Chad’s authorities concluded a political transition earlier this year and have committed to an economic reform agenda focused on improving domestic revenue mobilization and rationalizing public spending. Key measures include broadening the non-oil tax base, streamlining exemptions, and digitizing tax administration systems. The government also aims to reduce emergency spending and improve transparency in public financial management.

On the social front, the program prioritizes expanded protection mechanisms, including biometric identification systems and a unified social registry, to improve the delivery of assistance to vulnerable populations. Reforms in the oil sector and the publication of an audit on hydrocarbon revenues are expected to enhance transparency and improve oversight of state-owned enterprises.

The IMF noted that Chad’s program also contributes to wider efforts by the Economic and Monetary Community of Central Africa (CEMAC) to maintain regional external stability.

“Chad faces formidable challenges stemming from humanitarian, climate, and security shocks, compounded by volatile oil prices and declining official development assistance,” said IMF Deputy Managing Director Bo Li, who chaired the Executive Board session. “The authorities’ strong commitment to reforms and macroeconomic stability, along with the new ECF-supported program, offers a path toward inclusive and more balanced growth.”

The success of the program, the IMF added, will depend on steady implementation of fiscal and governance reforms, as well as continued engagement with development partners.