Treatment under Lyon terms (cancellation rate of 80%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 80%
repayment of ODA credits over 40 years with 16 years of grace
Specific provisions:
Possibility to conduct debt swaps
On a voluntary 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 [treated in the present Agreed Minute]as regards official development aid loans and direct Government loans ; (ii) the amounts of other outstanding credits [treated in the Agreed Minute], up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 30 million SDR, whichever is higher.
Free transferability provision
The Government of the Republic of Bolivia guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Bolivia 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 or will be deposited in the Central Bank of Bolivia.
Pullback clause
The Participating Creditor Countries reserve the right to review the implementation of the conditions stated [...] for the comparability of treatment between all external creditors ; if the Participating Creditor Countries determine that these conditions are not substantially fulfilled, or that the Government of the Republic of Bolivia has not met its payments obligations as specified in the Agreed Minute, the provisions [...] of the Agreed Minute will become null and void.
De minimis threshold of 2 000 000 SDR
Payment of non-consolidated amounts before December 31, 1998
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 Bolivia 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 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 Bolivia commits itself 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 the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Bolivia 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 Bolivia as compared to their share in the Republic of Bolivia'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 Bolivia and the creditor countries not listed in the Agreed Minute.
The Government of the Republic of Bolivia will inform in writing the Chairman of the Paris Club no later than June 30, 1999 of the progress made for this purpose in negotiations with other creditors. It will inform afterwards on a semestrial basis, the Chairman of the Paris Club of the status of its relationships with other creditors.
