It said the move would help with the country’s stabilisation and recovery strategy and catalyse further support from Chad’s external partners.

Structural reforms to improve public financial management and diversify the economy will be key elements of this, including improved budgetary practices and strengthening cash management and forecasting.

The new facility is intended to help Chad restore macroeconomic stability and lay the foundation for growth.

IMF first deputy managing director David Lipton said: “Chad’s macroeconomic and financial performances have deteriorated significantly over the past two years, against the backdrop of low oil prices, tense regional security situation, and a heavy external commercial debt burden.

“In 2016, real non-oil GDP contracted by 6%, following a 2.9% reduction in 2015.”

He said the new extended credit facility would seek to stabilise Chad’s fiscal and external position as well as re-establishing debt sustainability, through the restructuring of external commercial debt, prudent fiscal policies, and the resumption of growth.

Chadian authorities were committed to improving the mobilisation of non-oil revenue, which requires measures to broaden the tax base, and strengthen tax and customs administrations, Lipton added.