Identifier
Created
Classification
Origin
06NDJAMENA1400
2006-12-06 15:30:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ndjamena
Cable title:
CHAD: GOVERNMENT, WORLD BANK AND IMF AGREE ON 2007
how-toVZCZCXYZ0001 RR RUEHWEB DE RUEHNJ #1400 3401530 ZNR UUUUU ZZH R 061530Z DEC 06 FM AMEMBASSY NDJAMENA TO RUEHC/SECSTATE WASHDC 4666 INFO RUCPDOC/US DOC WASHDC RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHYD/AMEMBASSY YAOUNDE 1429 RUEHDK/AMEMBASSY DAKAR 1244 RUEHUJA/AMEMBASSY ABUJA 1333 RUEHNM/AMEMBASSY NIAMEY 2876 RUEHFR/AMEMBASSY PARIS 2050 RUEHLO/AMEMBASSY LONDON 1611 RUEHLC/AMEMBASSY LIBREVILLE 0953 RUEHBS/USEU BRUSSELS
UNCLAS NDJAMENA 001400
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR AF, EB, TREASURY FOR OTA, LONDON AND PARIS FOR
AFRICA WATCHERS
E.O. 12958: N/A
TAGS: ECON EFIN ENRG EPET PGOV CD
SUBJECT: CHAD: GOVERNMENT, WORLD BANK AND IMF AGREE ON 2007
BUDGET
REF: NDJAMENA 1307
UNCLAS NDJAMENA 001400
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR AF, EB, TREASURY FOR OTA, LONDON AND PARIS FOR
AFRICA WATCHERS
E.O. 12958: N/A
TAGS: ECON EFIN ENRG EPET PGOV CD
SUBJECT: CHAD: GOVERNMENT, WORLD BANK AND IMF AGREE ON 2007
BUDGET
REF: NDJAMENA 1307
1. (SBU) SUMMARY: The World Bank and the IMF and the
Government of Chad have been able to agree on what the Bank
believes is a sustainable budget for 2007. A Bank mission
will return in mid-December to continue work on a
stabilization mechanism for unspent oil revenues and
finalize a poverty reduction strategy paper. END SUMMARY.
- - - - - - - - - - - - -
BANK, GOC AGREE TO BUDGET
- - - - - - - - - - - - -
2. (SBU) On November 21, during a briefing with
representatives of the donor community, World Bank mission
leader Marie-Francoise Marie-Nelly stated that the GOC and
the Bank/IMF team had finally been able to agree on a
sustainable 2007 budget. Marie-Nelly noted that after a
series of meetings and presentations to GOC officials,
including Prime Minister Pascal Yoadminadji and Minister of
Finance Abbas Tolli, the Government finally agreed to reduce
its spending budget from 200 billion FCFA (400 million USD)
to approximately 132 billion FCFA (264 million USD). Marie-
Nelly pointed out that the Prime Minister appeared to
develop a better understanding of the impact that the
volatile oil markets and Chad's limited oil reserves would
have on the country's ability to generatepetroleum revenues
in the long-term.
- - - - - - - - -
SOME CONCERNS REMAIN
- - - - - - - - - -
3. (SBU) Marie-Nelly said that World Bank nd IMF were
still concerned with the limited scae of the country's non-
oil revenues, which onlyaccounted for ten percent of the
national GDP. he indicated that a sustainable budget
framewrk would have the non-oil GDP in the range of at
least 16 % (consistent with other oil-producing countries in
the region). The World Bank and IMF proposed that the GOC
place more emphasis on capturing customs revenues through
better inspection of incoming merchandise, and work to
ensure that incoming revenues enter the Public Treasury
without being lost to corrupt GOC authorities.
4. (SBU) Marie-Nelly also expressed concern that GOC's
decision to reorganize the Public Treasury and hire new
officials would hinder reform efforts, as the reorganization
would bring in a number of civil servants who lacked
experience in budget and finance. The World Bank, according
to her, was planning to hire a French consultant to assist
Minister Tolli's efforts to reorganize his office and
streamline the Ministry's workload.
- - - - -
NEXT STEPS
- - - - -
5. (SBU) Marie-Nelly said that a mission would return in
mid-December to work with the GOC on developing a
stabilization mechanism to invest unspent oil revenues, and
finalize the GOC's Poverty Reduction Strategy Paper (which
was now scheduled to be implemented in August 2007). She
also said a group of European parliamentarians would visit
in mid-December to stress the importance of poverty
reduction initiatives to GOC authorities.
WALL
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR AF, EB, TREASURY FOR OTA, LONDON AND PARIS FOR
AFRICA WATCHERS
E.O. 12958: N/A
TAGS: ECON EFIN ENRG EPET PGOV CD
SUBJECT: CHAD: GOVERNMENT, WORLD BANK AND IMF AGREE ON 2007
BUDGET
REF: NDJAMENA 1307
1. (SBU) SUMMARY: The World Bank and the IMF and the
Government of Chad have been able to agree on what the Bank
believes is a sustainable budget for 2007. A Bank mission
will return in mid-December to continue work on a
stabilization mechanism for unspent oil revenues and
finalize a poverty reduction strategy paper. END SUMMARY.
- - - - - - - - - - - - -
BANK, GOC AGREE TO BUDGET
- - - - - - - - - - - - -
2. (SBU) On November 21, during a briefing with
representatives of the donor community, World Bank mission
leader Marie-Francoise Marie-Nelly stated that the GOC and
the Bank/IMF team had finally been able to agree on a
sustainable 2007 budget. Marie-Nelly noted that after a
series of meetings and presentations to GOC officials,
including Prime Minister Pascal Yoadminadji and Minister of
Finance Abbas Tolli, the Government finally agreed to reduce
its spending budget from 200 billion FCFA (400 million USD)
to approximately 132 billion FCFA (264 million USD). Marie-
Nelly pointed out that the Prime Minister appeared to
develop a better understanding of the impact that the
volatile oil markets and Chad's limited oil reserves would
have on the country's ability to generatepetroleum revenues
in the long-term.
- - - - - - - - -
SOME CONCERNS REMAIN
- - - - - - - - - -
3. (SBU) Marie-Nelly said that World Bank nd IMF were
still concerned with the limited scae of the country's non-
oil revenues, which onlyaccounted for ten percent of the
national GDP. he indicated that a sustainable budget
framewrk would have the non-oil GDP in the range of at
least 16 % (consistent with other oil-producing countries in
the region). The World Bank and IMF proposed that the GOC
place more emphasis on capturing customs revenues through
better inspection of incoming merchandise, and work to
ensure that incoming revenues enter the Public Treasury
without being lost to corrupt GOC authorities.
4. (SBU) Marie-Nelly also expressed concern that GOC's
decision to reorganize the Public Treasury and hire new
officials would hinder reform efforts, as the reorganization
would bring in a number of civil servants who lacked
experience in budget and finance. The World Bank, according
to her, was planning to hire a French consultant to assist
Minister Tolli's efforts to reorganize his office and
streamline the Ministry's workload.
- - - - -
NEXT STEPS
- - - - -
5. (SBU) Marie-Nelly said that a mission would return in
mid-December to work with the GOC on developing a
stabilization mechanism to invest unspent oil revenues, and
finalize the GOC's Poverty Reduction Strategy Paper (which
was now scheduled to be implemented in August 2007). She
also said a group of European parliamentarians would visit
in mid-December to stress the importance of poverty
reduction initiatives to GOC authorities.
WALL