Supporting agreements with the international institutions
Program supported by an Arrangement under the Poverty Reduction and Growth Facility with the IMF approved on February 18, 2004
Total external debt of the country
$4 288 million as of December 31, 1999
$1 431 million of which being due to Paris Club as of January 01, 2004
Amounts treated
$361 million of which $147 million being canceled, of which $214 million being rescheduled
Accorded treatment
Restructuring of its public external debt
Decision point reached on July 06, 2000
Categories of debt treated
Treatment of arrears as of December 31, 2003
Treatment of maturities falling due from January 01, 2004 up to June 30, 2005
Repayment profile
Treatment under Cologne terms (cancellation rate of 90%)
- repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 90%
- repayment of ODA credits over 40 years with 16 years of grace
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) the amounts of outstanding loans as regards ODA loans; (ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of September 30, 1992 or up to an amount of 20 million dollars of the United States of America, whichever is higher.
Free transferability provision
The Government of the Republic of Honduras guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Honduras for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been deposited in the Central Bank of Honduras.
Phases
Payment of non-consolidated amounts before October 31, 2004
- First phase : From January 01, 2004 up to December 31, 2004, implemented at the signature of the agreement
- Second phase : From January 01, 2005 up to December 31, 2005, implemented on May 02, 2005
Comparability of treatment provision
In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of the Republic of Honduras commits to seek from all its external creditors debt reduction and reorganization arrangements on terms comparable in net present value to those set forth in the Agreed Minute for credits of comparable maturity. Comparability of treatment for debt reduction in net present value is assessed not only on the basis of the reduction in the face value of the debt but also on the terms of repayment of the debts not cancelled. Consequently, the Government of the Republic of Honduras commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minute, commercial banks and suppliers- a treatment not more favourable than that accorded to the Participating Creditor Countries.
Cut-off date
June 01, 1990
Organisation of the session
The meeting was chaired by Mrs Stéphane PALLEZ, Co-Chairperson of the Paris Club
The head of the debtor country's delegation was Mr. José Arturo ALVARADO, Minister of Finance of Honduras
Files attached
PRHonduras14april046870.pdf (93.08 KB)