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.
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 ; (ii) amounts of outstanding credits and loans on debts [treated in the present Agreed Minute] other than ODA loans, up to 10% of the amounts of outstanding credits as of March 31, 2000 or up to an amount of 10 million SDR, whichever is higher. Participating Creditor Countries and the Republic of Indonesia will inform the Chairman of the Group of the Official Creditor Countries of Indonesia, who will inform other Creditors, of the debt swap agreements prior to their implementation. All elements necessary to evaluate the operation, its impact on the Republic of Indonesia's economy and on the evolution of creditor's exposure will be transmitted to the Chairman of the Group of the Official Creditor Countries of Indonesia, including : its nature and purpose ; the parties to the debt swap ; the amount, type and value of the debt treated ; the price of sale to investors and the expense to the Republic of Indonesia.
Entry-into-force provision
The provisions of the present Memorandum of Understanding will enter into force provided that the International Monetary Fund has approved no later than June 5, 2000, the first review of the program supported by an arrangement under the Extended Fund Facility approved on February 4, 2000. The International Monetary Fund will inform the Chairman of the Group of the Official Creditor Countries of Indonesia of the relation between the Republic of Indonesia and the International Monetary Fund.
In the event that this review has not been effected by June 5, 2000, the payments covered by the present Memorandum of Understanding will be due according to the original contracts.
Agreement implemented on June 05, 2000
Free transferability provision
The Government of the Republic of Indonesia will continue to allow unrestricted and immediate access to the foreign exchange required for servicing private sector debts owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions.
Phases
First phase : From April 01, 2000 up to March 31, 2001, implemented on June 05, 2000
Second phase : From April 01, 2001 up to March 31, 2002, implemented on September 25, 2001
De minimis threshold of 1 000 000 SDR
Payment of non-consolidated amounts before August 31, 2000
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 Indonesia commits itself to seek promptly from all its external creditors a rescheduling or a refinancing on terms comparable to those set forth in the present Memorandum of Understanding for credits of comparable maturity, while trying to avoid any discrimination among various categories of creditors.
The Government of the Republic of Indonesia commits itself not to accord any external creditor conditions of repayment more favourable than those accorded by the Participating Creditor Countries for credits of comparable maturity.
The Government of the Republic of Indonesia will inform in writing the Chairman of the Group of Official Creditor Countries of Indonesia not later than November 30, 2000 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. Afterwards, the Government of the Republic of Indonesia will further inform in writing regularly the Chairman of the Group of Official Creditor Countries of Indonesia of the status of its negotiations with other creditors, as well as of the payments made to them
Treatment of maturities falling due from August 06, 1998 up to March 31, 2000
Repayment profile:
Treatment under Ad Hoc terms
Specific provisions:
Free transferability provision
The Government of the Republic of Indonesia will continue to allow unrestricted and immediate access to the foreign exchange required for servicing private sector debts owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions.
Phases
First phase : From August 06, 1998 up to March 31, 1999
Second phase : From April 01, 1999 up to March 30, 2000, implemented on December 24, 1999
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 Indonesia commits itself to seek promptly from all its external creditors a rescheduling or a refinancing on terms comparable to those set forth in the present Memorandum of Understanding for credits of comparable maturity, while trying to avoid any discrimination among various categories of creditors.
The Government of the Republic of Indonesia commits itself not to accord any external creditor conditions of repayment more favourable than those accorded by the Participating Creditor Countries for credits of comparable maturity.
The Government of the Republic of Indonesia will inform in writing the Chairman of the Group of Official Creditor Countries of Indonesia not later than December 31, 1998 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. Afterwards, the Government of the Republic of Indonesia will further inform in writing regularly the Chairman of the Group of Official Creditor Countries of Indonesia of the status of its negotiations with other creditors, as well as of the payments made to them.
