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World Bank Freezes Account Held by Chad

The World Bank has frozen a bank account held by Chad, the latest punishment tied to the country's modification of a law that governs how it uses revenue from an oil pipeline.

Officials say the London-based escrow account holds deposits from that revenue.

Last week, the World Bank suspended $124 million in loans to Chad, accusing the country of breaching a 1999 mutual agreement governing oil profits. Under that agreement, the bank provided financing for an oil pipeline with the condition that Chad use the profits to reduce poverty.

Citing a budget crisis, Chadian lawmakers last week abolished a fund that reserved 10 percent of oil revenue for future generations, and instead allowed for oil money to be spent on security. Chad insists the law does not go against the spirit of its agreement with the bank.

Some information for this story provided by Reuters and AFP.