afrol News, 26 June - The International Monetary Fund (IMF) today demanded the Chadian government repay US$ 7.6 million by 31 October because it had "provided the IMF with inaccurate information as to its external payments arrears." Thus, a disbursement last year had been granted on false premises.

The IMF today said it had reviewed matters related to an October 2002 disbursement to Chad in an amount of US$ 7.6 million. The Fund's Executive Board had agreed that Chad should repay the IMF in two equal instalments to be paid no later than 31 July and 11 October respectively.

Subsequent to a disbursement to Chad in October 2002, it had been found that Chad had provided the IMF with inaccurate information as to its external payments arrears. Specifically, the authorities had not informed the IMF of new external payments arrears accumulated between July and September 2002.

The accumulation of these arrears had "violated a continuous performance criterion" under Chad's poverty reduction arrangement with the IMF, and, "as a result of the inaccuracy in the information communicated to the Fund, the disbursement was deemed to be non-complying," IMF says in a press release.

Arrears, moreover, had continued to be accumulated in the last quarter of 2002 and in early 2003, the IMF said. In March 2003, however, Chadian authorities indicated that a set of corrective actions had been implemented, that all external arrears had been cleared, and that Chad had remained current on its external obligations since February 2003.

- However, Chad had accumulated new arrears when that communication was received and continued to do so in April 2003, the IMF release complained. "Furthermore, the corrective actions had not yet been fully implemented." These arrears only subsequently were cleared and the identified corrective actions put in place.

Acting IMF Chairman, Shigemitsu Sugisaki, said the Fund regretted the Chadian authorities' misreporting on the accumulation of new external payments arrears in October 2002.

- The further accumulation of arrears through April 2003 and the authorities' failure to fully implement a set of corrective actions, despite their assurances to the contrary, are a matter of serious concern, Mr Sugisaki added.

While recognising that all arrears have now been cleared, the IMF had considered that, under these circumstances, it would be inappropriate to continue approving further disbursements.

- Chad has, therefore, been asked to repay early the Fund the amount of [US$ 7.6 million] plus accrued interest, in two equal instalments, Mr Sugisaki said. "The [IMF] Board urged the authorities to fully and consistently implement the corrective measures they have identified and which are aimed at preventing the re-emergence of external payments arrears and misreporting," he added.

By staff writer

© afrol News

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