Chad is the first country to request a debt restructuring under a G-20 relief plan.
Keystone / Karel Prinsloo
Switzerland-based commodities trader Glencore has started talks with Chad over the restructuring of the nation’s more than CHF1 billion ($1.1 billion) commercial debt, Reuters news agency reported on Saturday, citing a letter from the company to the International Monetary Fund (IMF).
This content was published on
2 minutes
Reuters/swissinfo.ch/ds
The African nation had presented an official debt restructuring request in January. Chad is the first country to do so under a common framework agreement made last year by the Group of 20 to help poorer nations reduce or restructure debt deemed to be unsustainable.
In the letter quoted by Reuters, Glencore said it is engaging the government of Chad in a “constructive and good faith manner”.
“The lender group has held initial meetings with Rothschild & Cie, Chad’s financial advisors, and subsequently with the official creditor committee for Chad in the past week to exchange views on Chad’s request,” the October 15 letter said.
“We welcome the good faith gesture of our partner Glencore to open discussions for the restructuring of our debt, and find a compromise which would be agreeable to both parties,” Chad’s Budget and Finance Minister Tahir Hamid Nguilin told Reuters.
Economic recovery at stake
Chad’s economic recovery, he added, depended on the outcome of the talks with Glencore and a consortium of lenders.
The IMF considers Chad’s total debt of around $3 billion (CHF2.8 billion) unsustainable and conditioned further financial support on its restructuring. Chad has said Glencore represents more than 98% of its commercial debt, most of it oil-for-cash deals contracted in 2013 and 2014, Reuters noted.
The battlefield death of former president Idriss Déby in April threw Chad into political chaos. The coronavirus pandemic, rebel violence in the north, and delays in financial support have taken a heavy toll on the country’s economy.
Chad’s debt has already been restructured twice, in 2015 and 2018.
Popular Stories
More
Climate adaptation
Why Switzerland is among the ten fastest-warming countries in the world
High-net-worth individuals prioritise well-being over material possessions
This content was published on
The priorities of wealthy private individuals have shifted against the backdrop of ongoing geopolitical tensions and trade disputes. While spending on luxury goods is declining, demand for travel and experiences is unabated.
Swiss researchers sequence genome of 1918 Spanish flu virus
This content was published on
Researchers from the Universities of Basel and Zurich (UZH) have sequenced the genome of the Spanish flu virus, thanks to a sample taken from an 18-year-old Swiss boy who died in the city on the Limmat in 1918, when the pandemic spread around the world.
Swiss martyr beatified in Barcelona by Catholic Church
This content was published on
François-Benjamin May (1870-1909), a member of the Marist Brothers congregation, has been recognised as a 'blessed' by the Catholic Church.
Prevention and tech could help save billions on Swiss healthcare costs, says Deloitte
This content was published on
By focusing on prevention and technology, it would be possible to reduce Switzerland's healthcare bill by CHF30 billion a year by 2040, according to Deloitte Switzerland.
Environment director warns of increasing climate-related risks in Switzerland
This content was published on
The director of the Swiss Federal Office for the Environment (FOEN) has warned of increasing climate-related risks in Switzerland in an interview with SonntagsBlick on Sunday.
Gotthard traffic queue hits 11km at start of holiday season
This content was published on
The start of the summer holidays saw a long traffic jam in front of the Gotthard tunnel on Saturday. Traffic jams between Erstfeld and Göschenen in canton Uri were up to 11 kilometres long early in the morning.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
When companies can’t trust the trusted advisors
This content was published on
After missteps by auditors, advisors and institutions, questions are swirling about whether too much faith is being put in these trusted partners.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.