IMF Resumes Lending to Chad Following Glencore Debt Deal

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The International Monetary Fund said it was resuming loan disbursements to Chad after the Central African oil producer reached an agreement in principal to restructure its more than $1 billion debt to Glencore and four banks, the International New York Times reported on a Reuters story. Glencore and the banks lent Chad's state oil firm about $1.45 billion in 2014 to be repaid with crude oil cargoes but global oil prices crashed shortly thereafter. The debt has eaten up nearly all of Chad's oil profits -- 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 Chad 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. Read more. (Subscription required.)