From the Executive Board

Pages153-154

Page 153

Chad: ESAF

The IMF approved the third annual loan under the Enhanced Structural Adjustment Facility (ESAF), equivalent to SDR 16.5 million (about $22 million), to support Chad's economic program for 1998-99. The loan is available in two equal semiannual installments, the first of which will be made available on May 6,1998. 1998-99 Program

The government's overall objective is to strengthen macroeconomic adjustment, with a view to reducing financial imbalances and achieving sustainable growth. The key macroeconomic targets of the 1998-99 program are to achieve annual real GDP growth of 6 percent, limit annual inflation to 3.5 percent, and contain the current account deficit at 17 percent of GDP in 1998. To achieve these objectives, the authorities will strengthen the fiscal adjustment effort launched in previous years.Page 154

Structural Reforms

Under the program, the government will pursue structural reforms to enhance the efficiency of the productive sectors of the economy and improve government revenues. Also, actions are being taken to strengthen the banking system and increase competition, notably through the privatization of the two remaining state-owned banks. Addressing Social Needs

The government will continue to implement social policies to achieve a substantial reduction in poverty. These policies...

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