Le vendredi 18 octobre dernier, national councillors of Chad have adopted a bill creating a body responsible for the recovery of debts from the banking sector.

The Chadian government intends to deal with the 12.1% increase in outstanding debts in the Chadian banking sector by the end of 2022. For this reason, he plans to set up a public body responsible for developing concrete and sustainable measures to recover these claims. According to information published on the website of the National Transitional Council (CNT), the announced creation of this company stems from the observation that “the activity to support the economy through domestic credit remains hampered by an accumulation of outstanding debts, which have been increasing for several years, and valued at 300.7 billion FCFA as of December 31, 2022, an increase of 12.1% in year-on-year.” In reality, the increase in outstanding loans is an obstacle to the profitability and viability of Cemac credit institutions. Faced with the increase in outstanding loans, the Central African Banking Commission (Cobac) has initiated measures, in particular those requiring credit institutions to develop and communicate their plans for the settlement of outstanding debts as well as the measures taken at their level to improve their credit risk management systems

At the economic level, the increase in outstanding debts results from the weakening of government fiscal balances, in a context of the fall in oil prices in mid-2014.