Creditors say Chad does not need debt relief now given oil price surge

Creditors say Chad does not need debt relief now given oil price surge

Chad's creditors on Thursday said they had agreed that the African country did not need debt relief at the moment given a surge in oil prices, but committed to reconvene if a financing gap was identified.

In a statement released by the Paris Club of official creditors, Chad's creditors said they were finalizing a memorandum of understanding on a deal, which marks the outcome under a debt treatment framework agreed by the Group of 20 major economies and the Paris Club in late 2020.

Together with Ethiopia and Zambia, Chad was one of three initial countries to seek a debt restructuring under a G20 initiative, but progress has been glacial.

The deal, first reported by Reuters, makes clear that Chad's bilateral creditors - China, France, India and Saudi Arabia - would act to offer Chad debt relief if needed, a source familiar with the matter told Reuters.

The agreement also includes Switzerland-based mining and commodity firm Glencore, a major creditor, which was seen as a "huge step," said the source.

Although Chad is currently benefiting from high oil prices, economists and experts say both government and private-sector creditors must be ready to act in case debt servicing conditions become more difficult for the country.

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