Sovereign haircuts / TCD
Chad
2 concluded restructurings, between 2015 and 2018. The earliest default they settle began in 2014. The worst cost creditors 27.3% of the present value of their claim, in 2018. The longest gap between a default and its settlement was 1 year.
Every restructuring
Two measures of the same deals, never combined. The present-value haircut discounts what creditors got against what they were owed; the face-value reduction counts only principal written off.
| Default | Settled | Years to settle | Present-value haircut | Face-value reduction | Debt treated (2020 $) | Source |
|---|---|---|---|---|---|---|
| 2014 | 2015 | 1 | 10.8% | 0.0% | $1.52B | Asonuma and Trebesch (2016) |
| 2017 | 2018 | 1 | 27.3% | 0.0% | $1.72B | Asonuma and Trebesch (2016) |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Debt treated is the amount restructured, deflated to constant 2020 US dollars in the source file. A negative haircut means the new instruments were worth more than the old claim. Methodology
Default spells
| Spell | From | To | Years | Restructurings |
|---|---|---|---|---|
| TCD_2014-2015 | 2014 | 2015 | 2 | 1 |
| TCD_2017-2018 | 2017 | 2018 | 2 | 1 |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Duration counts both endpoints. The spells table also carries a cumulative-haircut column; it is not published here because it does not reconcile with the per-episode haircuts, see the methodology. Methodology
Debt still in default
$233.0M across 2 creditor classes in 2024. A haircut can only be measured once a restructuring concludes, so any of this that is still being negotiated is by construction absent from the tables above.
| Creditor class | In default, 2024 |
|---|---|
| Domestic (fiscal) arrears | $181.0M |
| Other official creditors | $52.0M |
Source: Bank of Canada-Bank of England Sovereign Default Database (CRAG) Bank of Canada terms (attribution). Includes domestic arrears, so it is not comparable with the debt-treated column above. Methodology
Restructurings with Chinese creditors
1 restructuring with a Chinese creditor is recorded here. No haircut is attached to any of them, so they cannot be placed on the scale above; the file records only whether face value or the interest rate was cut.
| Year | Type | Creditor | Terms |
|---|---|---|---|
| 2017 | Debt rescheduling only | China Ex-Im Bank | China Ex-Im Bank reached a restructuring agreement with the Government of Chad on the following three loans: 1) A 700 mn RMB loan with an interest rate of 1.5% and a 5-year grace period from 2007 2) A $25.06 million loan with an interest rate of 1.5% and a 5-year grace period from 2007 between China Ex-Im Bank and the government of Chad 3) A $330 million USD preferential buyer’s credit for the Rônier Oil Refinery And Pipeline Project with 15-year maturity, 5-year grace period, and an interest rate of 6-month LIBOR plus 300 basis points from 2011. The rescheduling agreement extended the maturities of all three loans. No details known. |
Source: Horn, Reinhart & Trebesch, China's overseas lending and debt restructurings Methodology