Debt in Chad

Public debt in Chad is managed through domestic and external borrowing, government securities, arrears and debt-restructuring arrangements. At the end of 2024, public and publicly guaranteed external debt was about US$6.291 billion, equal to 32.8% of gross domestic product. External debt represented 17.2% of gross domestic product and domestic debt 15.6%. The external stock included multilateral debt at 8.0% of gross domestic product and commercial debt at 1.1%. Domestic debt included securities at 8.1%, other domestic debt at 5.8% and arrears at 1.7%. Domestic bonds accounted for about 6.8% of gross domestic product and Treasury bills for about 1.2%. The former private Glencore-related debt has fallen substantially. Chad also contracted a US$500 million UAE loan in November 2024 and issued about CFAF 50 billion in Afreximbank Treasury bonds in December 2024. The Ministry of Finance and the Direction Générale du Trésor oversee public debt records and payments. CONAD supports the debt strategy, including the Medium-Term Debt Management Strategy for 2024–2026. SYGADE is being connected to SIGFIP to improve debt and public-finance information. The 2025 IMF Extended Credit Facility provides about SDR 455.65 million, or approximately US$625 million, over 48 months. The stated direction is to prioritize concessional loans and grants, limit net Treasury issuance, avoid new non-concessional external loans and keep annual domestic borrowing within CFAF 15 billion. A debt-service ceiling of 14% of revenue also applies to the programme framework. Recognized arrears stood at CFAF 61.1 billion at the end of March 2025, while unrecognized arrears were estimated at CFAF 122.7 billion. By the end of 2025, contractor arrears had fallen to about CFAF 42 billion and CFAF 51 billion in external arrears had been repaid. The IMF and World Bank debt-sustainability assessment for 2025 classified Chad's external and overall public debt as being at high risk of distress. The assessment identified oil prices as the main shock factor. Fiscal consolidation, concessional financing and control of arrears therefore directly affect the government's ability to service debt. Chad's participation in the G20 Common Framework produced an agreement in 2022 and debt-service relief involving Glencore and official creditors. That framework treatment expired in June 2024, so creditor negotiations and arrears resolution remain relevant. For households and micro, small and medium-sized businesses, banks and microfinance institutions are the main formal sources of borrowing. Chad had 10 banks and 50 microfinance institutions with 172 service points. At the end of 2023, microfinance institutions reported 368,637 customers or members, a credit portfolio of CFAF 15.6 billion and savings of CFAF 19.2 billion. Banks are concentrated mainly in urban areas, making microfinance particularly relevant for individuals and smaller businesses. Formal borrowing remains limited. Small and medium-sized businesses often face weak financial records and collateral requirements of about 120% of the loan value. In 2024, the average annual percentage rate was about 11.3% for small and medium-sized businesses compared with 7.7% for large companies; medium- and long-term rates were about 12.1% and 11.6%. Exact consumer-credit caps, nationwide restructuring periods and standard collection costs are not reliably established in the available evidence. Digital credit was not regulatorily authorized in the 2023 diagnostic. Borrowers generally have to provide accurate information, cooperate with the lender and repay according to the contract. The CEMAC credit-information framework allows customer data to be shared with consent and provides for complaints, data protection and disclosure of tariffs under BEAC supervision and Instruction 2020. National implementation and coverage of the credit bureau or registry remain incomplete. Borrowing from family and friends is also part of the financial landscape: in 2024, 17.1% of people borrowed from at least one source, while 82.7% did not borrow. Informal borrowing may be easier to obtain but usually offers less documentary protection and fewer clear procedures when repayment fails. When a debt remains unpaid, a creditor may seek recovery through the Société Nationale de Recouvrement des Créances, known as SNRC, or through the courts. SNRC is intended to recover bad loans outside court or support enforcement. Chad has been an OHADA member since 1996. The revised Uniform Act on Simplified Recovery and Enforcement Procedures, known as AUPSRVE, took effect on 16 February 2024. It provides procedures such as an injonction de payer, or court order to pay, and conservatory or executory seizure of assets, claims, wages and real estate. The creditor normally proceeds through the competent court and a huissier, a judicial officer. Deadlines and costs depend on the case. OHADA also provides collective procedures for companies, including conciliation, règlement préventif, judicial reorganization and liquidation of assets. These procedures can help address business distress, but practical access and court capacity vary locally. No reliable nationwide consumer debt-advice service has been established in the available evidence, although financial mediation has been proposed for consumer protection. A person or company facing repayment difficulty should therefore preserve contracts, payment records, notices and security documents, check the creditor's calculation and seek qualified local legal or financial assistance before an injunction, seizure or insolvency procedure advances.