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 [treated in the present Agreed Minute] as regards official development aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated in the present Agreed Minute], up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 40 million US dollars, whichever is higher.

Good will clause

In response to the request of the representatives of the Government of the United Republic of Tanzania, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the United Republic of Tanzania's debt service payments falling due after November 30, 1999 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before June 30,1986 provided :

- that the United Republic of Tanzania continues to have an appropriate arrangement with the International Monetary Fund ;

- that the United Republic of Tanzania has reached with other creditors effective arrangements meeting the conditions described in [the present Agreed Minute] and has reported in writing to the Chairman of the Paris Club, pursuant to [the present Agreed Minute];

- and that the United Republic of Tanzania has complied with all conditions set out in this Agreed Minute.

Special account

To facilitate the implementation of this Agreed Minute, the Government of the United Republic of Tanzania will deposit in the special account established with the Bank of England, the equivalent of at least SDR 4.75 million at the end of each month, commencing in February 1997 through November 1999 inclusive. The Government of the United Republic of Tanzania undertakes to have this Bank notify the Chairman of the Paris Club as soon as each deposit has been made. The total amount approximates the amounts estimated to be payable to all Participating Creditor Countries from December 1, 1996 up to November 30, 1999 inclusive under the terms of the bilateral agreements to be concluded pursuant to this Agreed Minute. As specific payments under these agreements become due, the Government of the United Republic of Tanzania will draw on the special account to meet these payments ; no drawing will be made on the special account for any other use before all payments due from December 1, 1996 up to November 30, 1999 inclusive under these agreements have been made. Any drawing on this account will be made after a previous 15-day notice to the above Bank, which this Bank will notify immediately to the Chairman of the Paris Club. This scheme could be continued by agreement between the parties.

Phases

• First phase : From December 01, 1996 up to December 31, 1997, implemented at the signature of the agreeement
• Second phase : From January 01, 1998 up to December 31, 1998, not implemented
• Third phase : From January 01, 1999 up to November 30, 1999, not implemented

De minimis threshold of 500 000 SDR

Payment of non-consolidated amounts before June 30, 1997