Restructuring the debt of Gabon

Paris Club creditors agreed on December 15, 2000 with the Government of the Republic of Gabon to a restructuring of its public external debt. This agreement follows the International Monetary Fund's approval of a Stand-By Arrangement on October 23, 2000.

The agreement provides for the rescheduling of roughly US $532 million out of a total of US $686 million of arrears due to Paris Club creditors as of September 30, 2000. In addition, Gabon agreed to pay maturities on all external debts as they fall due.

The amounts rescheduled will be paid over 12 years of which 3 are grace at market rates of interest with rising payment profile (see attached table). Post-cut-off-date arrears and 65% of arrears under the latest Paris Club agreement must be paid before February 28, 2001, with the remainder of these arrears to be paid by July 31, 2001. Finally, late interest accrued will be capitalised and paid in four equal quarterly instalments ending on April 30, 2002.

Each creditor may also undertake, on a voluntary and bilateral basis, debt for nature, debt for aid, debt for equity swaps or other debt swaps.

This debt restructuring will make an important contribution to improving Gabon's economic outlook and will satisfy Gabon's financing requirements during the period of its current IMF Stand-By Arrangement (October 2000 to April 2002). This agreement will enter into force on February 28, 2001 provided payments on maturities are made on due date and provided clearance of post-cut-off-date arrears and payment of the first instalment on arrears resulting from the 1995 Paris Club agreement.