Supporting agreements with the international institutions
Program supported by an Arrangement under the Extended Credit Facility (ECF) approved on February 24, 2012
Download the IMF report : ECF program
Total external debt of the country
$750 million of which being due to Paris Club as of January 01, 2012
Amounts treated
$344 million of which $151 million being canceled, of which $193 million being rescheduled
Accorded treatment
Debt relief of the external public debt on 11th April 2012, following the approval by the International Monetary Fund (IMF) of a new three-year arrangement under the Extended Credit Facility on 24th February 2012
Categories of debt treated
Treatment of arrears as of December 31, 2011. Treatment of the stock as of January 01, 2012
Treatment of maturities falling due from January 01, 2012 up to December 31, 2014
Repayment profile
Treatment under Cologne terms
- repayment of non ODA credits over 23 years, with 6 years of grace
- repayment of ODA credits over 40 years with 16 years of grace
On an exceptional basis, considering the Republic of Guinea's limited capacity of payment, creditors have also agreed to defer and reschedule over an eight-year period the repayment of maturities due by the Republic of Guinea on short term and post cut-off date debts; and, over a three-year period the arrears on those claims. They also agreed to defer all the interest due on the amounts treated.
Specific provisions
Possibility to conduct debt swaps
On a voluntary and bilateral basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt for nature, debt for aid, debt for equity swaps or other local currency debt swaps:
i) all official development assistance loans;
(ii) the amounts of outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of 31st December 1992 or up to an amount of 20 million SDR, whichever is higher.
Phases
- First phase : From January 01, 2012 up to December 31, 2012, implemented at the signature of the agreement
- Second phase : From January 01, 2013 up to December 31, 2013, not implemented
- Third phase : From January 01, 2014 up to December 31, 2014, not implemented
Comparability of treatment provision
The Republic of Guinea was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2000 and was declared to have reached its Decision Point in December 2000. In this context, the Republic of Guinea commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 11 April 2012, their appropriate contribution in terms of debt relief to the enhanced HIPC initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.
The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Guinea's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Republic of Guinea and creditor countries not listed in the Agreed Minutes dated 11 April 2012.
Consequently, the Republic of Guinea commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 11 April 2012, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date
January 01, 1986
Organisation of the session
The meeting was chaired by Mr. Ramon FERNANDEZ, Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Kerfalla YANSANE, Minister of Economy and Finance.
Files attached
PRGUINEA20120411ab59.pdf (175.53 KB)