Debt cancellation following Haiti’s having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 30 June 2009
Categories of debt treated:
Treatment of arrears as of May 31, 2009. Treatment of the stock as of June 01, 2009
Repayment profile:
Treatment under HIPC Initiative Exit terms
Paris Club creditors also committed on a bilateral and voluntary basis to cancel an additional USD 152 million. As a result of this agreement and additional bilateral efforts, the Republic of Haiti's debt to Paris Club creditors will be entirely cancelled.
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 with the exception of 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 loans mentioned in c), up to 20% of the amounts of outstanding credits as of 28 February 1995 or up to an amount of 20 million dollars of the United States of America, whichever is higher.
Comparability of treatment provision:
The Republic of Haiti was declared eligible to the enhanced HIPC Initiative by the IDA and the IMF in 2006 and was declared to have reached its Completion Point in June 2009. In this context, the Republic of Haiti commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 8July 2009, 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 Haiti'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 Haiti and creditor countries not listed in the Agreed Minutes dated 8 July 2009.
Consequently, the Republic of Haiti commits not to accord any category of external creditors -and in particular creditor countries not participating in the Agreed Minutes dated 8July 2009, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
October 01, 1993
Organisation of the session:
The meeting was chaired by Mr. Julien RENCKI, Vice Chairman of the Paris Club
The head of the debtor country's delegation was Mr. Daniel DORSAINVIL, Minister of Economy and Finance
Restructuring of the external public debt. Given its track-record of reforms as well as the burden of its external indebtedness, Haiti reached in November 2006 the Decision Point under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative
Categories of debt treated:
Treatment of arrears as of October 31, 2006
Treatment of maturities falling due from November 01, 2006 up to October 31, 2009
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 ODA loans with the exception of loans; (ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of 28 February 1995 or up to an amount of 20 million dollars of the United States of America, 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 Haiti 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 Haiti's outstanding debt stock and to make the necessary effort in favour of the Republic of Haiti 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 Haiti 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 Haiti has reached its Completion Point under the enhanced HIPC initiative.
Phases
First phase : From November 01, 2006 up to October 31, 2007, implemented at the signature of the agreement
Second phase : From November 01, 2007 up to October 30, 2008, implemented on March 18, 2008
Third phase : From November 01, 2008 up to October 31, 2009, implemented on February 18, 2009
Payment of non-consolidated amounts before June 30, 2007
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 Haiti commits to seek from all its external creditors debt reduction and reorganization arrangements on terms comparable in net present value to those set forth in Agreed Minutes dated December 12, 2006 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 Haiti commits to grant all categories of creditors - and in particular creditor countries not participating in these Agreed Minutes, commercial banks and suppliers - a treatment not more favourable than the one granted to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Haiti with the creditors not participating in these Agreed Minutes and those concluded with the Participating Creditor Countries, all relevant elements shall be taken into account, including the exposure of the creditors not participating in these Agreed Minutes, the level of cash payments received by those creditors from the Government of the Republic of Haiti as compared to their share in the Republic of Haiti'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 Republic of Haiti and the creditors not participating in these Agreed Minutes.
Cut-off date:
October 01, 1993
Organisation of the session:
The meeting was chaired by Mr. Ambroise Fayolle, Co Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Daniel Dorsainvil, Minister of Economy and Finance.
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) the amounts of outstanding loans mentioned in Article II paragraph 1 above as regards Official Development Assistance loans; (ii) the amounts of other outstanding credits mentioned in Article II paragraph 1, up to 20% of the amounts of outstanding credits as of May 6, 1993 or up to an amount of 10 million SDR, whichever is higher.
Payment of non-consolidated amounts before July 01, 2004
Comparability of treatment provision:
The Republic of Guyana 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.
Cut-off date:
December 31, 1988
Organisation of the session:
The meeting was chaired by Mr. Ramon Fernandez, Vice-Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Saisnarine Kowlessar, Minister of Finance.
