Debt debate

IMF clashes with Africa’s creditors over debt relief

in depth

This article is part of the dossier:

Africa and the economic storm

By Julian Pecquet

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Posted on October 14, 2022 16:14

© IMF African Department Director Abebe Aemro Selassie reacts at the headquarters of the IMF during the group’s Annual Meetings in Washington, U.S., October 13, 2022. REUTERS/James Lawler Duggan — IMF African Department Director Abebe Aemro Selassie reacts at the headquarters of the IMF during the group’s Annual Meetings in Washington, U.S., October 13, 2022. REUTERS/James Lawler Duggan

The IMF’s top Africa official today pressed the continent’s creditors not to use rising oil prices as an excuse to turn their back on debt relief for cash-strapped energy exporters.

The remarks from IMF African Department Director Abebe Aemro Selassie come one day after the Paris Club of official creditors announced that rising oil revenues meant that Chad is no longer in need of immediate relief from bilateral creditors. The IMF approved a three-year, $570m programme for Chad last December.

“The creditor committee examined the latest developments on the macroeconomic and financial situation of Chad and noted that no debt relief from official bilateral creditors is currently needed given the surge in oil prices since the approval of the IMF upper credit tranche (UCT) program by the Executive Board on December 10, 2021,” the Paris Club said in a 13 October statement.

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