Debtor country:
Creditor country:
Terms:
Treatment date:
Status of the treatment:
Supporting agreements with the international institutions:
IMF program supported by an Arrangement under the Poverty Reduction and Growth Facility (PRGF) approved on November 20, 2006
Download the IMF report : PRGF document
Total external debt of the country:
$1 332 million as of September 30, 2005
$194 million of which being due to Paris Club as of October 01, 2006
Amounts treated:
$69 million of which $7 million being canceled, of which $62 million being rescheduled
Accorded treatment:
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.
Files attached:
Observers (countries):
Observers (institutions):