IMF Urges ‘Credible’ Chad Debt Treatment by Private Creditors

The International Monetary Fund wants Chad’s private creditors to engage in “credible” talks before approving a much-needed support program for one of the world’s poorest countries, Bloomberg News reported. Following two months of talks, China, France, India and Saudi Arabia agreed in June to restructure the credits and back an IMF loan program to shore up the central African economy under a Group of 20 debt-relief plan. But the IMF is still seeking “a strong commitment from private creditors on their willingness to negotiate” debt treatments, it said in a statement on Tuesday. The IMF’s statement raises pressure on commercial lenders including Glencore Plc to renegotiate a $1 billion loan to Chad after government creditors reached an agreement on the oil-rich nation’s debt. “Debt has to be sustainable for us to be able to proceed with financing,” Abebe Aemro Selassie, Director of the IMF’s African Department, told Bloomberg in an interview Tuesday. “Without a clear path forward to bringing debt to a sustainable position, we cannot move forward.” Read more.