Supporting agreements with the international institutions
Program with the IMF approved on November 21, 2003
Total external debt of the country
$5 200 million as of December 31, 2002, representing 121% outstanding debt in net present value in % of export receipts
$1 919 million of which being due to Paris Club as of December 31, 2003
Amounts treated
Accorded treatment
Restructuring of the external debt of the Republic of Kenya in order to further support the continuing efforts on economic recovery undertaken by the Government of the Republic of Kenya under the current IMF arrangement
Categories of debt treated
Treatment of arrears as of December 31, 2003
Treatment of maturities falling due from January 01, 2004 up to December 31, 2006
Repayment profile
Treatment under Houston terms
- repayment of non ODA credits over 15 years, with 5 years of grace
- repayment of ODA credits over 20 years with 10 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 debt swaps: (i) all ODA loans; (ii) amounts of outstanding credits, loans and consolidations, other than ODA loans, on debts, up to 20% of the amounts of outstanding claims as December 31, 1993 or up to an amount of 20 million SDR, whichever is higher. Participating Creditor Countries and the Republic of Kenya will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swap agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Kenya's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat, including: its nature and purpose; the parties to the debt swap; the amount, type and value of the debt treated; the price of sale to investors and the expense to the Republic of Kenya.
Phases
- 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 December 27, 2004
- Third phase : From January 01, 2006 up to December 31, 2006, implemented on May 15, 2007
De minimis threshold of 1 000 000 SDR
Payment of non-consolidated amounts before July 01, 2004
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 Kenya commits to seek promptly from all its external creditors a rescheduling or a refinancing on terms comparable to those set forth in the present Agreed Minute, while trying to avoid discriminations among different categories of creditors.
The Government of the Republic of Kenya agrees to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, and private creditors- a treatment not more favourable than that accorded to the Participating Creditor Countries.
The Government of the Republic of Kenya will inform in writing the Chairman of the Paris Club not later than July 1, 2004 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. The Government of the Republic of Kenya will further inform in writing regularly the Chairman of the Paris Club of the status of its negotiations with other creditors, as well as of the payments made to them.
Cut-off date
December 31, 1991
Organisation of the session
The meeting was chaired by Mrs Stéphane Pallez, Co-Président of the Paris Club.
The head of the debtor country's delegation was Mr. David Mwiraria, Minister for Finance.
Files attached
PRKenya15jan046870.pdf (81.82 KB)