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 Agreed Minute] as regards official development aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated in the Agreed Minute], up to 20% of the amounts of outstanding credits as of June 30, 1992 or up to an amount of 20 million SDR, whichever is higher.
Entry-into-force provision
The provisions of the Agreed Minute will come into force provided that the Government of the Republic of Zambia has made all payments due to Participating Creditor Countries due pursuant to [...] the Agreed Minute, and following notification by the Chairman of the Paris Club.
Agreement implemented on March 31, 2000
Good will clause
In response to the request of the representatives of the Government of the Republic of Zambia:
a) the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Republic of Zambia's debt service payments falling due after March 31, 2002 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before January 1, 1983, provided:
- that the Republic of Zambia continues to have an appropriate arrangement with the International Monetary Fund ;
- that the Republic of Zambia has reached with other creditors effective arrangements meeting the conditions [treated in the Agreed Minute] and has reported in writing to the Chairman of the Paris Club, pursuant to [the Minute] ;
- and that the Republic of Zambia has complied with all conditions set out in this Agreed Minute.
b) alternatively, if as at April 1, 2002, the Government of the Republic of Zambia has maintained satisfactory relations with the Participating Creditor Countries, and notably has fully implemented all agreements signed with them and continues to have an appropriate arrangement with the International Monetary Fund, the Participating Creditor Countries agree in principle to hold a meeting to consider the matter of the Republic of Zambia's stock of debt.
Special account
To facilitate the implementation of this Agreed Minute, the Government of the Republic of Zambia will deposit in the special account established with the Bank for International Settlements, the equivalent of at least SDR 3,3 million at the end of each month, commencing in July 1999 through March 2002 inclusive. The Government of the Republic of Zambia 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 April 1, 1999 up to March 31, 2002 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 Republic of Zambia 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 April 1, 1999 up to March 31, 2002 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 April 01, 1999 up to March 31, 2000, implemented on March 31, 2000
- Second phase : From April 01, 2000 up to March 31, 2001, implemented on September 22, 2000
De minimis threshold of 500 000 SDR
Payment of non-consolidated amounts before June 30, 1999
