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Chad Asks to Suspend Payments on Glencore Oil-Backed Loan

  • Nation owes Glencore $379 million, $778 million to others
  • Request for payment relief may be a litmus test for lenders
Updated on

Chad asked Glencore Plc to suspend payments on its oil-for-cash loan this year, a move that could prove a precedent for private creditors worried about being dragged into a global debt-relief push for poor countries.

After securing a $61 million debt waiver in June, sponsored by the Group of 20, the central African nation sent a letter to the world’s biggest commodity trader and other private lenders, asking them to allow debt freezes, according to two people familiar with the matter. This would suspend more than $100 million in payments in 2020, according to the International Monetary Fund.