Supporting agreements with the international institutions
IMF program approved on October 29, 1997
Amounts treated
$1 444 million
Categories of debt treated
Treatment of arrears as of October 31, 1997
Treatment of maturities falling due from July 01, 1997 up to October 31, 2000
Repayment profile
Treatment under Naples terms (cancellation rate 67%)
- 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
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 [treated in the present Agreed Minute] as regards official development aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated inn the present Agreed Minute], up to 20% of the amounts of outstanding credits as of August 31, 1996 or up to an amount of 15 million SDR, whichever is higher.
Entry-into-force provision
Agreement implemented on December 31, 1998
Good will clause
In response to the request of the representatives of the Government of the Republic of Yemen, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Republic of Yemen's debt service payments falling due after October 31, 2000 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before January 1, 1993 provided :
- that the Republic of Yemen continues to have an appropriate arrangement with the International Monetary Fund ;
- that the Republic of Yemen has reached with other creditors effective arrangements meeting the conditions [of 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 Republic of Yemen has complied with all conditions set out in this Agreed Minute.
Phases
- First phase : From July 01, 1997 up to December 31, 1998, implemented on December 31, 1998
- Second phase : From January 01, 1999 up to December 31, 1999, implemented on April 28, 1999
- Third phase : From January 01, 2000 up to October 31, 2000, not implemented
De minimis threshold of 500 000 SDR
Payment of non-consolidated amounts before March 31, 1998
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 Yemen commits itself to promptly negotiate debt reduction arrangements with all its external creditors.
Consequently, the Government of the Republic of Yemen commits itself not to accord any category of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers - a treatment more favourable than that accorded by the Participating Creditor Countries for credits of comparable maturity and legal nature.
Organisation of the session
Have attended: