World Bank suspends loans to Chad

February 7, 2006

The World Bank has suspended all loans to Chad, saying the African country’s government had breached an agreement over oil revenue controls.

Bank president Paul Wolfowitz announced the move, one of the most drastic the bank can take against a member country.

He accused Chad’s government of acting “unilaterally” after it voted to relax controls on the use of its oil profits.

The bank had lent Chad more than $39m (£23m) on condition that non-government groups checked its use of oil revenues.

The private sector arm of the World Bank, the International Finance Corporation, also lent another $100m and mobilised a further $300m for the pipeline.

BBC NEWS | Business | World Bank suspends loans to Chad