Debt cancellation, the Republic of Guinea having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 26 September 2012
Categories of debt treated:
Treatment of the stock as of September 01, 2012
Repayment profile:
Treatment under HIPC Initiative Exit terms
Paris Club creditors also confirmed their willingness to grant additional debt relief on a voluntary and bilateral basis for an amount of USD 299.6 million. The Paris Club agreement and additional bilateral efforts will result in a reduction of the debt of the Republic of Guinea to Paris Club creditors of 99.2%, i.e. USD 655.9 million.
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) all official development assistance loans;
(ii) the amounts of outstanding credits, loans and consolidations, other than official development assistance loans, up to 20% of the amounts of outstanding credits as of 31st December 1992 or up to an amount of 20 million SDR, whichever is higher.
Comparability of treatment provision:
The Republic of Guinea was declared eligible to the enhanced HIPC Initiative by the IDA and the IMF in 2000 and was declared to have reached its Completion Point in September 2012. In this context, the Republic of Guinea commits to promptly seek from all its bilateral and commercial external creditors which are not participating in the Agreed Minutes dated 25 October 2012 their appropriate contribution, in terms of debt relief, to the enhanced HIPC Initiative, on top of traditional debt relief mechanisms, and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.
The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under the Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Guinea's external debt, the nature and characteristics of all treatment applied, including debt buy backs, all characteristics of the reorganized claims -and in particular their repayment terms, regardless of the forms they take- and, more generally, the financial relations between the Republic of Guinea and all their other creditors.
Consequently, the Republic of Guinea commits not to grant any category of external bilateral and commercial creditors -and in particular litigating creditors, creditor countries not participating in the Agreed Minutes dated 25 October 2012, commercial banks, suppliers and bondholders- a treatment more favourable than that granted to Participating Creditor Countries.
Cut-off date:
January 01, 1986
Organisation of the session:
The meeting was chaired by Mr. Arnaud BUISSÉ, Vice-Chairman.
The head of the debtor country's delegation was Mr. Kerfalla YANSANÉ, Minister of State in charge of Economy and Finance.
Restructuring of the external public debt, following the approval by the International Monetary Fund (IMF) of a new arrangement under the Poverty Reduction and Growth Facility on 21 December 2007
Categories of debt treated:
Treatment of arrears as of December 31, 2007
Treatment of maturities falling due from January 01, 2008 up to December 31, 2010
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 debts with the exception of the loans administered by IDA and provided by the European Union member states.
(ii) the amounts of other outstanding credits, loans and consolidations with the exception of the loans administered by IDA and provided by the European Union member states, up to 20% of the amounts of outstanding loans, credits and consolidations as of 31 December 1992 or up to an amount of 20 million SDR, whichever is higher.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Government of the Republic of Guinea under the Enhanced HIPC Initiative, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the Completion Point designed to examine the question of the Republic of Guinea's outstanding debt stock and to make the necessary effort in favour of the Republic of Guinea to allow it to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Government of the Republic of Guinea maintains satisfactory relations with the Participating Creditor Countries and a sound adjustment track record;
- the Executive Boards of the IMF and the IDA decide that the Republic of Guinea has reached its Completion Point under the enhanced HIPC initiative.
Phases
First phase : From January 01, 2008 up to December 31, 2008, implemented at the signature of the agreement
Second phase : From January 01, 2009 up to December 31, 2009, not implemented
Third phase : From January 01, 2010 up to December 31, 2010, not implemented
Comparability of treatment provision:
The Republic of Guinea was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2000 and was declared to have reached its Decision Point in December 2000. In this context, the Republic of Guinea commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 23 January 2008, their appropriate contribution in terms of debt relief to the enhanced HIPC initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.
The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Guinea's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Republic of Guinea and creditor countries not listed in the Agreed Minutes dated 23 January 2008.
Consequently, the Republic of Guinea commits not to accord any category of creditors -and in particular creditor countries not participating in these Agreed Minutes, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
January 01, 1986
Organisation of the session:
The meeting was chaired by M. Benoît Coeuré, Co-Chairman of the Paris Club.
The head of the debtor country's delegation was M. Ousmane Dore, Minister for Economy, Finance and Planning.
Given its track-record of reforms as well as the burden of its external indebtedness, Guinea reached in December 2000 its decision point under the enhanced HIPC Initiative.
Categories of debt treated:
Treatment of arrears as of December 01, 2000
Treatment of maturities falling due from December 01, 2000 up to March 31, 2004
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
Rescheduling of ODA claims at a rate at least as favourable as the original contractual rate
Specific provisions:
Possibility to conduct debt swaps
On a voluntary and bilateral basis, the Government of each 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) all ODA loans; (ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of December 31, 1992 or up to an amount of SDR 20 million, whichever is higher. Participating creditor countries and the Government of the Republic of Guinea will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Guinea'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 of the Republic of Guinea.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Republic of Guinea under the enhanced Debt Initiative for the Heavily Indebted Poor Countries, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the completion point designed to examine the question of the Republic of Guinea's outstanding debt stock and to make the necessary effort, in favour of the Republic of Guinea to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Republic of Guinea maintains satisfactory relations with participating Creditor Countries, fully implements all the agreements signed with them and maintains a sound adjustment track record;
- the Boards of the International Monetary Fund and the International Development Association decide that the Republic of Guinea has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
Phases
First phase : From December 01, 2000 up to March 31, 2002, implemented at the signature of the agreement
Second phase : From April 01, 2002 up to March 31, 2003, implemented on June 16, 2003
Third phase : From April 01, 2003 up to March 31, 2004, not implemented
De minimis threshold of 250 000 SDR
Payment of non-consolidated amounts before August 31, 2001
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 Guinea commits itself to seek from all its external creditors debt reduction and reorganisation arrangements on terms comparable in net present value to those set forth in the Agreed Minute dated 15 May 2001 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 Guinea commits itself to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minute dated 15 May 2001, commercial banks and suppliers- a treatment not more favorable than that accorded to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Guinea with its creditors not listed in the Agreed Minute dated 15 May 2001 on the one hand, and arrangements with the Participating Creditor Countries on the other hand, all relevant elements will be taken into account, including the exposure of the creditors not listed in the Agreed Minute dated 15 May 2001, the level of cash payments received by those creditors from the Government of the Republic of Guinea as compared to their share in the Guinea's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganised claims and in particular their repayment terms whatever forms they take, and in general the financial relations between the Government of the Republic of Guinea and the creditors not listed in the Agreed Minute dated 15 May 2001.
Cut-off date:
January 01, 1986
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. Cheick Ahmadou Camara, Minister of Economy and Finance
Reduction of the stock of debt of the Republic of The Gambia, this country having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) in December 2007
Categories of debt treated:
Treatment of the stock as of December 01, 2007
Repayment profile:
Treatment under HIPC Initiative Exit terms
Comparability of treatment provision:
The Republic of The Gambia was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2000 and was declared to have reached its Completion Point in December 2007. In this context, the Republic of The Gambia commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 24 January 2008, their appropriate contribution in terms of debt relief to the enhanced HIPC initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.
The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of The Gambia's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Republic of The Gambia and creditor countries not listed in the Agreed Minutes dated 24 January 2008.
Consequently, the Republic of The Gambia commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 24 January 2008- a treatment more favourable than that accorded to the Participating Creditor Countries.
Organisation of the session:
The meeting was chaired by M. Julien Rencki, Vice-Chairman of the Paris Club.
The head of the debtor country's delegation was M. Mousa Gibril Bala-Gaye, Secretary of State for Finance and Economic Affairs.
repayment of non ODA credits over 14 years, with 3 years of grace
repayment of ODA credits over 14 years with 3 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 the amounts of outstanding credits and loans mentioned in paragraph 1. above other than Official Development Assistance loans, as well as consolidation of such credits, up to 10% of the amounts of these outstanding credits and consolidations as of December 31, 1999, or up to an amount of 15 million SDR, whichever is higher.
Good will clause
If the Government of the Republic of Gabon implements fully the present Agreed Minute, maintains satisfactory relations with the Participating Creditor Countries and the IMF, successfully completes the Stand-By Arrangement with the International Monetary Fund, approved on May 28, 2004, and has a new appropriate follow-on medium term arrangement with the IMF, the representatives of the Participating Creditor Countries agreed in principle to consider a treatment of maturities of the debt after June 30, 2005, that is consistent with the Republic of Gabon's financing needs.
Phases
First phase : From May 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 February 11, 2005
De minimis threshold of 1 500 000 SDR
Payment of non-consolidated amounts before December 31, 2004
Comparability of treatment provision:
In order to secure comparable treatment of its debt due to its other external public or private creditors, the Government of the Republic of Gabon commits to seek promptly from its external creditors debt reorganization arrangements on terms comparable to those set forth in the present Agreed Minute, while trying to avoid discrimination among different categories of creditors. The Government of the Republic of Gabon commits to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, and private sector- a treatment not more favorable than that accorded to the Participating Creditor Countries for credits of comparable maturity.
Cut-off date:
July 01, 1986
Organisation of the session:
The meeting was chaired by Mr. Ramon Fernandez, Vice-President of the Paris Club.
The head of the debtor country's delegation was Mr. Paul Toungui, State Minister, Minister of Economy, Finance, Budget and Privatisation.
Treatment of maturities falling due from March 01, 2001 up to March 31, 2004
Repayment profile:
Treatment under Naples terms (cancellation rate of 48,6%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 48,6%
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) all ODA loans ; (ii) the amounts of other outstanding credits, loans and consolidations mentioned in paragraph 1. above, up to 20% of the amounts of outstanding credits as of November 30, 1992 or up to an amount of 20 million SDR, whichever is higher. Participating creditor countries and the Government of Ethiopia will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on Ethiopia'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 of Ethiopia.
Good will clause
In response to the request of the representatives of the Government of Ethiopia, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of Ethiopia's debt service payments falling due after March 31, 2004 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before December 31, 1989, provided :
- that Ethiopia continues to have an appropriate arrangement with the International Monetary Fund ;
- that Ethiopia has reached with other creditors effective arrangements meeting the conditions described in Article III paragraph 1. above and has reported in writing to the Chairman of the Paris Club, pursuant to Article III paragraph 2. above ;
- and that Ethiopia has complied with all conditions set out in this Agreed Minute.
Free transferability provision
The Government of Ethiopia guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Ethiopia for servicing their foreign debt legally contracted under the Ethiopian law and owed to or guaranteed by the participating or Observer Creditor Countries or their appropriate institutions.
Phases
First phase : From March 01, 2001 up to March 31, 2002, implemented at the signature of the agreement
Second phase : From April 01, 2002 up to March 31, 2003, implemented on May 31, 2002
Third phase : From April 01, 2003 up to March 31, 2004, implemented on September 08, 2003
De minimis threshold of 250 000 SDR
Payment of non-consolidated amounts before July 15, 2001
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 Ethiopia commits itself to seek promptly from all its external creditors debt reduction and reorganization arrangements on terms comparable in net present value to those set forth in the present 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 Ethiopia commits itself to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- a treatment not more favourable than that accorded to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of Ethiopia with its creditor countries not listed in the present Agreed Minute on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements will be taken into account, including the real exposure of the creditor countries not listed in the present Agreed Minute, the level of cash payments received by those creditor countries from the Government of Ethiopia as compared to their share in Ethiopia's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Government of Ethiopia and the creditor countries not listed in the present Agreed Minute.
Cut-off date:
December 31, 1989
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. Sufian Ahmed, Minister of Finance.
On a voluntary basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt swaps, the amounts of outstanding credits, loans and consolidations [treated in the present agreed minute]. On a voluntary basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt swaps, the amounts of outstanding credits, loans and consolidations [treated in the present agreed minute], up to 10 % of the total amount, or up to an amount of 20 million US dollars, whichever is higher.
Pullback clause
The Participating Creditor Countries reserve the right to review the implementation of the conditions stated in [the present agreed minute] for the comparability of treatment between all external creditors; if the Participating Creditor Countries determine that these conditions are not substantially fulfilled, or if the Government of the Arab Republic of Egypt has not met its payments obligations under this Agreed Minute to the Participating Creditor Countries during the first three years, the provisions of [the recommendations] of the present Agreed Minute will become null and void.
Special account
To facilitate the implementation of this Agreed Minute, the Central Bank of Egypt will deposit in the special account established with the Banque de France the equivalent of SDR 2400 Million in 12 quarterly installments of SDR 200 Million each, the first one to be made on October 15, 1991. The Central Bank of Egypt will arrange to have the Banque de France notify the Chairman of the Paris Club as soon as each deposit has been made. The total amount approximates the amount estimated to be payable to all Participating Creditor Countries during the next three years. As specific payments under this Agreed Minute become due, the Central Bank of Egypt will draw on the special account to meet these payments ; no drawing will be made on the special account for any other repayment before all payments due through June 30, 1994 inclusive under this Agreed Minute have been made. Any drawing on this account will be made after a previous 15-day notice to the Banque de France, which will notify immediately the Chairman of the Paris Club.
De minimis threshold of 10 000 000 SDR
Payment of non-consolidated amounts before October 31, 1991
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 Arab Republic of Egypt commits itself to seek from all its external creditors debt reduction and reorganization arrangements on terms comparable to those set forth in this Agreed Minute for credits of comparable maturity.
This means that the Government of the Arab Republic of Egypt commits itself to accord all categories of creditors - and in particular creditor countries not participating in this Agreed Minute, commercial banks and suppliers - a treatment not more favourable than that accorded the Participating Creditor Countries.
