OECD

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 debt swaps : (i) all ODA loans ; (ii) amounts of outstanding credits, loans and consolidations on debts [treated in the present Agreed Minute] other than official development aid loans, up to 10% of the amounts of outstanding credits as of December 31, 1990 or up to an amount of 20 million SDR, whichever is higher. Participating Creditor Countries and the Federal Republic of Nigeria will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swap agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Federal Republic of Nigeria's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat, 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 of the Federal Republic of Nigeria.

Entry-into-force provision

The provisions of the present Agreed Minute will enter into force on April 15, 2001 unless Participating Creditors Countries consider that the following conditions are not fulfilled :

- satisfactory payments to Participating Creditor Countries on amounts due pursuant to the provisions of [the present Agreed Minute] or ;

- satisfactory implementation of the stand-by arrangement with the Government of the Federal Republic of Nigeria approved by the Executive Board of the International Monetary Fund on August 4, 2000. For this purpose, the IMF will inform the Chairman of the Paris Club regarding the status of the relations of the Federal Republic of Nigeria with the IMF.

Agreement implemented on April 15, 2001

Good will clause

If the Government of the Federal Republic of Nigeria implements fully the present Agreed Minute, maintains satisfactory relations with Participating Creditor Countries and the International Monetary Fund, successfully completes the current program with the International Monetary Fund approved on August 4, 2000 under the stand-by arrangement, and has an appropriate follow-on medium term arrangement with the International Monetary Fund, the representatives of the Participating Creditor Countries agreed in principle to consider possible options in further restructuring of Nigeria's debt falling due after July 31, 2001 consistent with Nigeria's medium and long term capacity to repay.

Free transferability provision

The Government of the Federal Republic of Nigeria guarantees free and unrestricted access to the foreign exchange market, allowing immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Nigeria for servicing their foreign debt owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions, and not subject to the present consolidation.

Pullback clause

The Participating Creditor Countries will review the implementation of the conditions stated in [the present Agreed Minute]. If, in light of the decisions taken by the Board of the International Monetary Fund, the Participating Creditor Countries determine that these conditions were not fulfilled for the implementation of the present Agreed Minute they may declare part or all of the provisions set forth [...] in the present Agreement null and void.

De minimis threshold of 1 500 000 SDR

Payment of non-consolidated amounts before June 30, 2001

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 ; (ii) amounts of outstanding credits, loans and consolidations on debts mentioned in paragraph 1. above other than official development aid loans, up to 20% of the amounts of outstanding credits as of March 4, 1994 or up to an amount of 20 million SDR, whichever is higher. Participating creditor countries and the Republic of Niger will inform semi-annually the Secretariat of the Paris Club, who will inform other Creditors, of the debt swap agreements they have implemented. All elements necessary to evaluate the operation, its impact on Niger's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat, 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 of the Republic of Niger.

Good will clause

Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favor of the Republic of Niger under the enhanced Debt Initiative for the Heavily Indebted Poor Countries (HIPC), the Participating Creditor Countries declare their readiness in principle to hold at completion point a meeting designed to examine the question of the Republic of Niger's outstanding debt stock and to make the necessary effort, in favor of the Republic of Niger to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :

- the Republic of Niger maintains satisfactory relations with participating Creditor Countries, fully implements all the agreements signed with them and maintains a sound adjustment track record ;

- the Boards of the International Monetary Fund and the International Development Association decide that the Republic of Niger has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
 

Pullback clause

The Participating Creditor Countries will review the implementation of the conditions stated in [the present Agreed Minute]. If in light of the decisions taken by the Board of the International Monetary Fund, the Participating Creditor Countries determine that these conditions were not fulfilled for the implementation of the present Agreed Minute, they may declare part or all of the provisions set forth [...] in the present Agreed Minute null and void.

Phases

• First phase : From December 01, 2000 up to December 31, 2001, implemented at the signature of the agreement
• Second phase : From January 01, 2002 up to December 31, 2002, implemented on February 26, 2002
• Third phase : From January 01, 2003 up to December 31, 2003, implemented on June 11, 2003

De minimis threshold of 100 000 SDR

Payment of non-consolidated amounts before April 30, 2001

Possibility to conduct debt swaps