Debt cancellation, the Federal Republic of Somalia having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on December 13, 2023
Categories of debt treated:
Treatment of the stock as of January 1, 2023
Repayment profile:
Treatment under HIPC Initiative Exit terms
In addition, Paris Club creditors confirmed their willingness to grant additional debt cancellation on a voluntary and bilateral basis for an amount of USD 815 million.
Comparability of treatment provision:
The Federal Republic of Somalia was declared eligible to the Enhanced HIPC Initiative by the IDA and the IMF in February 2020 and was declared to have reached its Completion Point in December 2023. In this context, the Federal Republic of Somalia commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated March 13, 2024, 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.
Whether the debt relief provided is appropriate 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 Federal Republic of Somalia’s external debt; the nature and characteristics of all treatment applied, including debt buy backs; all characteristics of the reorganized claims and in particular their repayment terms regardless of the forms they take; and, more generally, the financial relations between the Federal Republic of Somalia and all its other creditors.
Consequently, the Federal Republic of Somalia commits not to accord any category of external creditors -and in particular litigating creditors, creditor countries not participating in the Agreed Minutes dated March 13, 2024, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
1 October 1984
Organisation of the session:
The agreement was signed by Mr. Bertrand Dumont, Chairman of the Paris Club and Director General of the Treasury and Mr. William Roos, Co Chairman and Assistant Secretary at the Directorate-General of the Treasury.
The head of the debtor country was H.E. Bihi Iman Egeh, Minister of Finance.
Restructuring agreement of its external public debt, following the financing assurances provided by the Paris Club creditors on 2 September 2021
Categories of debt treated:
Treatment of arrears as of 31 December 2022
Treatment of maturities falling due from 1 January 2022 up to 31 December 2024
Repayment profile:
Treatment under classic terms
Repayment of ODA claims over 20 years, with 7 years of grace
Repayment of non-ODA claims over 15 years, with 8 years of grace
Repayment of all existing arrears as of end-2021 in two instalments in 2022 and 2024
Specific provisions:
Good will clause
Based on a future assessment that the Republic of Suriname has fulfilled all its commitments under the agreement, notably the comparability of treatment, and maintaining sound macroeconomic policies consistent with long-term debt sustainability, Paris Club creditors are committed to reschedule all maturities in capital falling due starting on 1 January, 2025. If the 2024 IMF assessment of the macroeconomic situation is consistent with the projections in the current EFF, the repayment schedule of rescheduled claims will be 17 years (including a 4-year grace period) for ODA claims and 12 years (including a 5-year grace period) for NODA claims from 1 December 2024.
This debt treatment will eventually allow the creditors to make additional efforts including through the conclusion of debt swaps, on a voluntary and bilateral basis, to support the country’s efforts in favour of environmental, social and governance goals.
The Republic of Suriname has committed to seek debt treatments at least as favourable from all other bilateral and external commercial creditors.
Comparability of treatment provision:
In order to secure comparable treatment of debts due to external public or private creditors, the Government of the Republic of Suriname commits itself to seek from its other official bilateral creditors and its external private creditors debt reorganization arrangements on terms at least as favourable as those set forth in the Agreed Minutes dated 22 June 2022 making sure to avoid discrimination among different categories of creditors.
For that purpose, the Government of the Republic of Suriname commits to inform the Participating Creditor Countries before concluding a debt reorganization arrangement in order to allow the Participating Creditor Countries to assess whether the proposed terms of debt treatment are at least as favourable to those set forth in the Agreed Minutes dated 22 June 2022.
The Government of the Republic of Suriname commits itself not to accord any other official bilateral creditors or its external private creditors financial conditions of repayment assessed more favourable than those accorded to the Participating Creditor Countries.
Cut-off date:
29 April 2021
Organisation of the session:
The meeting was chaired by William ROOS, Co Chairman of the Paris Club, Assistant Secretary at the Directorate-General of the Treasury of the French Ministry of Economy, Finance and Industrial and Digital Sovereignty
The head of the debtor country’s delegation was Mr. Armand ACHAIBERSING, Minister of Finance and Planning.
Debt relief of its external public debt, this country having reached its Decision Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) in June 2021
Categories of debt treated:
Treatment of arrears as of 31 December 2020
Treatment of maturities falling due from 1 January 2021 up to 30 September 2024
67% cancellation of pre cut-off-date non Official Development Assistance (NODA) claims and rescheduling of the remaining claims over 23 years, with a 6 years grace period
100% rescheduling of pre cut-off-date ODA claims treated over 40 years with a 16 years grace period
On an exceptional basis, the Paris Club creditors have also decided to defer over 16 years period from 1 December 2024 the repayment of arrears accumulated by Sudan on short term and post cut-off date debts, the maturities falling due during the consolidation period under the post cut-off date debts as well as all moratorium interest due during the consolidation period on the rescheduled and deferred amounts.
Representatives from Kuwait Fund for Arab Economic Development, Saudi Fund for Development, the Abu Dhabi Fund for Development and the Czech Republic also attended the meeting as observers. They expressed their support to the terms reached between the Paris Club and the Government of Sudan and indicated their willingness to provide to Sudan comparable terms under the framework of enhanced HIPC Initiative and in accordance with terms and conditions adopted by their respective Boards of Directors.
Specific provisions:
Good will clause
Given the decision by Participating Creditor Countries to contribute to the exceptional assistance in favour of the Government of the Republic of the Sudan under the Enhanced HIPC Initiative, the Participating Creditor Countries declare their readiness to hold a meeting at Completion Point designed to examine the question of the Republic of the Sudan’s outstanding debt stock and to make the necessary effort in favour of the Republic of the Sudan 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 the Sudan maintains satisfactory relations with the Participating Creditor Countries and a sound reform track record;
- the Executive Boards of the IMF and the IDA decide that the Republic of the Sudan has reached its Completion Point under the enhanced HIPC initiative.
Furthermore, if as of 30 June 2024, the Republic of the Sudan has not reached its Completion Point under the enhanced HIPC initiative, the Participating Creditor Countries declare their readiness in principle to a meeting to consider the matter of the Republic of the Sudan's debt service payments falling due after 30 September 2024, provided:
- that the Republic of the Sudan continues to have an appropriate arrangement with the IMF;
- that the Republic of the Sudan has made all reasonable efforts to reach with other creditors effective arrangements meeting the conditions and has reported in writing to the Chairperson of the Paris Club;
- and that the Republic of the Sudan has complied with all conditions set out in the Agreed Minutes dated 15 July 2021.
Phases
First phase : From 1 January 2021 up to 30 September 2022, effective upon signature of the agreed minutes by all relevant parties
Second phase : From 1 October 2022 up to 30 September 2023
Third phase : From 1 October 2023 up to 30 September 2024
Comparability of treatment provision:
The Republic of the Sudan was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in March 2021 and was declared to have reached its Decision Point in June 2021. In this context, the Republic of the Sudan commits to finalize the debt data reconciliation process and seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 15 July 2021, 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 Sudan’s external debt, the nature and characteristics of all treatments 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 Sudan and creditor countries not listed in the Agreed Minutes dated 15 July 2021.
Consequently, the Government of the Republic of the Sudan commits not to accord any category of creditors a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
1 January 1984
Organisation of the session:
The meeting was chaired by Mr. Emmanuel MOULIN, Chairman of the Paris Club.
The head of the debtor country's delegation was Dr. Gibril IBRAHIM, Minister of Finance and Economic Planning.
$ 11 725 million as of December 2000, representing 434% of exports of goods and services $ 4 324 million being due to the Paris Club as of July 31, 2001
Amounts treated:
$4 324 million, of which $2 743 million being canceled, $ 1581 million being rescheduled
Categories of debt treated:
Treatment of arrears as of July 31, 2001
Treatment of the stock as of March 23, 2005
Repayment profile:
Treatment under Ad Hoc terms
Specific provisions:
Possibility to conduct debt swaps
Phases
First phase: From August 01, 2001 up to March 22, 2002 implemented at the signature of the agreement
Second phase: From March 23, 2002 up to March 22, 2005 implemented on May 29, 2002
Third phase : From March 23, 2005, implemented on February 15, 2006
De minimis threshold of 1 000 000 SDR Payment of non-consolidated amounts before March 22, 2002
Comparability of treatment provision:
Yes
Cut-off date:
December 02, 1982
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. Miroljub Labus, Deputy Prime Minister.
Treatment of maturities falling due from September 01, 1998 up to June 30, 2001
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:
Entry-into-force provision
Agreement implemented on June 30, 1999
Good will clause
In response to the request of the representatives of the Government of the Central African Republic, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Central African Republic 's debt service payments falling due after June 30, 2001 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before January 1, 1983 provided:
- that the Central African Republic continues to have an appropriate arrangement with the International Monetary Fund;
- that the Central African Republic has reached with other creditors effective arrangements meeting the conditions described in [the Agreed Minute]. above and has reported in writing to the Chairman of the Paris Club, pursuant to [the Agreed Minute];
- and that the Central African Republic has complied with all conditions set out in this Agreed Minute.
If as at June 30, 2001, the Government of the Central African Republic 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 Central African Republic 's stock of debt.
Free transferability provision
The Government of the Central African Republic will take the relevant administrative measures or extend existing measures to ensure that the private debtors in the Central African Republic will be permitted to pay into the Central Bank 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 September 01, 1998 up to June 30, 1999, implemented on June 30, 1999
Second phase : From July 01, 1999 up to June 29, 2000, implemented on February 12, 2001
Third phase : From July 01, 2000 up to June 30, 2001, implemented on February 12, 2001
De minimis threshold of 250 000 SDR
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 Central African Republic 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 Central African Republic 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 by the Participating Creditor Countries for credits of comparable maturity and legal nature.
The Government of the Central African Republic will inform in writing the Chairman of the Paris Club not later than December 31, 1998 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. The Government of the Central African Republic will further inform in writing regularly the Chairman of the Paris Club of the status of its negotiations with other creditors, as well as of the payments made to them, and in any case before the meeting mentioned in [the Agreed Minute], the Chairman of the Paris Club of the status of its negotiations with other creditors and effective payments in their favour.
Cut-off date:
January 01, 1983
Organisation of the session:
The meeting was chaired by Mr. Philippe de FONTAINE VIVE, Vice President of the Paris Club.
The head of the debtor country's delegation was Mr. Anicet Georges DOLOGUELE, Minister of Finance and Budget.
On 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.
Payment of non-consolidated amounts before March 31, 2002
Comparability of treatment provision:
The Government of Mozambique 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 to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Mozambique with its creditors not listed in the Agreed Minute on the one hand, and arrangements with the Participating Creditor Countries on the other hand, all relevant elements will be taken into account, including the exposure of the creditors not listed in the Agreed Minute, the level of cash payments received by those creditors from the Government of Mozambique as compared to their share in Mozambique's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganised claims and in particular their repayment terms whatever forms they take, and in general the financial relations between the Government of Mozambique and the creditors not listed in the Agreed Minute.
Cut-off date:
February 01, 1984
Organisation of the session:
The meeting was chaired by Ambroise Fayolle, Vice President of the Paris Club.
The head of the debtor country's delegation was Luisa Dias Diogo, Ministry of Planning and Finance.
