Treatment of maturities falling due from January 01, 2004 up to June 30, 2005
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 loans; (ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of September 30, 1992 or up to an amount of 20 million dollars of the United States of America, whichever is higher.
Free transferability provision
The Government of the Republic of Honduras guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Honduras for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been deposited in the Central Bank of Honduras.
Phases
Payment of non-consolidated amounts before October 31, 2004
First phase : From January 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 May 02, 2005
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 Honduras 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 the 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 Republic of Honduras commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minute, commercial banks and suppliers- a treatment not more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
June 01, 1990
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. José Arturo ALVARADO, Minister of Finance of Honduras
Treatment of maturities falling due from April 01, 1999 up to March 31, 2002
Repayment profile:
Treatment under Naples terms (cancellation rate of 67%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 67%
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 [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 September 30, 1992 or up to an amount of 20 million of dollars of the United States of America, whichever is higher.
Good will clause
In response to the request of the representatives of the Government of the Republic of Honduras :
a) the Participating Creditor Countries agreed in principle to hold a meeting to consider the matter of the Republic of Honduras' 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 June 1, 1990 provided :
- that the Republic of Honduras continues to have an appropriate arrangement with the International Monetary Fund ;
- that the Republic of Honduras has reached with other creditors effective arrangements meeting the conditions described in [the present Agreed Minute] and has reported in writing to the Chairman of the Paris Club, pursuant to [the Agreed Minute] ;
- and that the Republic of Honduras has complied with all conditions set out in this Agreed Minute.
b) Alternatively, if during the three years following the date of the signature of the present Agreed Minute, the Government of the Republic of Honduras has maintained satisfactory relations with the Participating or Observer 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 Honduras' stock of debt.
Free transferability provision
The Government of the Republic of Honduras will take the relevant administrative measures or extend existing measures to ensure that the private debtors in the Republic of Honduras will be permitted to pay into the Central Bank of Honduras 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.
Phases
First phase : From April 01, 1999 up to March 31, 2000, implemented at the signature of the agreement
Second phase : From April 01, 2000 up to March 31, 2001, implemented on July 28, 2000
Third phase : From April 01, 2001 up to March 31, 2002, implemented on November 22, 2001
De minimis threshold of 500 000 SDR
Payment of non-consolidated amounts before October 31, 1999
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 Honduras commits itself to negotiate debt reorganization arrangements with all its external creditors providing for comparable debt reduction in net present value as well as comparable terms of repayment of the debts not cancelled.
The Government of the Republic of Honduras commits itself not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minute, commercial banks and suppliers- a treatment more favourable than that accorded to the Participating Creditor Countries for credits of comparable maturity and legal nature.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Honduras with its creditor countries not listed in the 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 Agreed Minute, the level of cash payments received by those creditor countries from the Government of the Republic of Honduras as compared to their share in the Republic of Honduras' 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 Honduras and the creditor countries not listed in the Agreed Minute.
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
