WORLD BANK FREEZES CHAD'S LONDON ACCOUNT

 Chad News 1-13-2006

The Chad government said its London escrow account for its oil revenues had been frozen as a result of its dispute with the World Bank, which suspended aid to the African nation last week.

"The government has just been informed of a letter dated Jan 6... addressed to Citibank, ordering it to suspend all transfers to Chad of oil revenues destined for our country," Chad's Finance Minister Abbas Mahamat Tolli said in a statement received by Agence France-Presse.

"This measure is completely unjustified."

The move came after the World Bank last week suspended a package of 124 mln usd worth of loans and grants put in place to help Chad exploit its oil reserves under a seven-year-old accord marrying development and poverty alleviation.

The bank announced the aid suspension last Friday as punishment for Chad's attempt to side-step loan provisions designed to ensure that oil revenues were managed for the benefit of poor Chadians.