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.
