Chad has been enduring the intensifying effect of oil price and security shocks as well as a heavy external debt service burden. In spite of dramatic fiscal adjustments, the economic and social situation has worsened, and liquidity pressure is now felt across a segment of the banking sector as the government continued to accumulate arrears. The authorities are requesting a three-year arrangement under the Extended Credit Facility (ECF) in the amount of SDR 224.32 million (160 percent of quota) in support of their medium-term economic program, after the cancelation of the existing ECF. The new ECF arrangement is expected to address the country's protracted balance of payments problems by supporting policies required to stabilize and revive the economy.

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