Representatives of the Paris Club creditor countries met with representatives of the Government of the Republic of Chad on 24 June 2015 and agreed on a debt cancellation.

Representatives of the Paris Club creditor countries met with representatives of the Government of the Republic of Chad on 24 June 2015 and agreed on a debt cancellation. The Republic of Chad reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 29 April 2015. 

In order to contribute to restoring the debt sustainability of the Republic of Chad, Paris Club creditors decided to cancel USD 20.8 million in nominal terms, which represents the Paris Club's share of the cancellation effort called for in the framework of the enhanced HIPC Initiative. Creditors welcomed and supported Chad's commitment to seek comparable treatment from all its other external bilateral official and commercial creditors. 

Paris Club creditors also confirmed their willingness to grant additional debt relief on a bilateral basis for an amount of USD 41.8 million. 

This agreement and additional bilateral efforts will result in a cancellation of the debt of the Republic of Chad to Paris Club creditors by 100%, i.e. USD 62.6 million. 

Paris Club creditors welcomed Chad's determination to continue to implement a comprehensive poverty reduction strategy and an ambitious economic program providing the basis for sustainable economic growth. 

The Republic of Chad has committed to use the resources freed by this debt treatment for priority areas identified in the country's poverty reduction strategy and for inclusive growth.

Background notes 

1. The Paris Club was formed in 1956. It is an informal group of creditor governments from major industrialized countries.