The Islamic Republic of Mauritania was declared eligible to the Enhanced HIPC Initiative by the Executive Boards of the International Monetary Fund and the International Development Association in February 10, 2000 and was declared to have reached its completion point on June 18, 2002.
In this context, the Islamic Republic of Mauritania commits to seek promptly from all its external creditors which are not participating in the present Agreed Minute 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 shall 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 shall be taken into account, including the level of cash payments received by those creditors as compared to their share in the Islamic Republic of Mauritania'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 Islamic Republic of Mauritania and creditor countries not listed in the present Agreed Minute.
Consequently, the Islamic Republic of Mauritania commits 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 to the Participating Creditor Countries.
Cut-off date:
December 31, 1984
Organisation of the session:
The meeting was chaired by Mr. Ambroise Fayolle, Vice President of the Paris Club.
The head of the debtor country's delegation was Mr. Boydiel Ould Houmeid, Ministry of Finances.
Treatment of maturities falling due from July 01, 1999 up to June 30, 2002
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) all Official Development Aid loans ; (ii) amounts of outstanding credits, loans and consolidations on debts [treated in the present Agreed Minute] other than official development aid loans, up to 20% of the amounts of outstanding credits as of December 31, 1992 or up to an amount of 20 million SDR, whichever is higher. Participating creditor countries and the Islamic Republic of Mauritania 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 Mauritania'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 Islamic Republic of Mauritania.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Islamic Republic of Mauritania under the enhanced Debt Initiative for the Heavily Indebted Poor Countries (HIPC), the Participating Creditor Countries declare their readiness in principle to hold at completion point a meeting designed to examine the question of the Islamic Republic of Mauritania's outstanding debt stock and to make the necessary effort, in favour of the Islamic Republic of Mauritania to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :
- the Islamic Republic of Mauritania 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 World Bank decide that the Islamic Republic of Mauritania has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
Free transferability provision
The Government of the Islamic Republic of Mauritania will take the relevant administrative measures or extend existing measures to ensure that private debtors in Mauritania will be permitted to pay into the Bank of the Islamic Republic of Mauritania or its designated agents, the local currency counterpart of their obligations past due or falling due, corresponding to their debt of any nature owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions. The Government of the Islamic Republic of Mauritania will guarantee the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Mauritania corresponding to the above mentioned debts.
Phases
First phase : From July 01, 1999 up to October 31, 2000, implemented at the signature of the agreement
Second phase : From November 01, 2000 up to October 31, 2001, implemented on March 19, 2001
Third phase : From November 01, 2001 up to June 30, 2002, not implemented
De minimis threshold of 500 000 SDR
Payment of non-consolidated amounts before July 31, 2000
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 Islamic Republic of Mauritania 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 the Islamic Republic of Mauritania 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 the Islamic Republic of Mauritania 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 the Islamic Republic of Mauritania as compared to their share in the Islamic Republic of Mauritania'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 the Islamic Republic of Mauritania and the creditor countries not listed in the present Agreed Minute.
The Government of the Islamic Republic of Mauritania will inform in writing the Chairman of the Paris Club no later than September 30, 2000 of the progress made for this purpose in negotiations with other creditors mentioned [...] hereabove, and will communicate to the Chairman of the Paris Club the content of its bilateral agreements with these creditors.
repayment of ODA credits over 40 years with 16 years of grace
Specific provisions:
Payment of non-consolidated amounts before October 31, 2003
Comparability of treatment provision:
The Republic of Mali commits to seek promptly from all its external creditors which are not participating in the present Agreed Minute 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 shall 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 shall be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Mali'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 Mali and creditor countries not listed in the present Agreed Minute.
Consequently, the Republic of Mali commits 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 to the Participating Creditor Countries.
Cut-off date:
January 01, 1988
Organisation of the session:
The meeting was chaired by Mr. Ambroise Fayolle, Vice president.
The head of the debtor country's delegation was Mr. Bassary Touré, Ministry of Economy and Finances.
