The Participating Creditor Countries reserve the right to review the implementation of the conditions stated in Article III paragraphs 1. and 3. hereabove 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 Yemen has not met its payments obligations as specified in the present Agreed Minute, the provisions of Article II. of the present Agreed Minute will become null and void ;
De minimis threshold of 1 000 000 SDR
Payment of non-consolidated amounts before September 30, 2001
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 Yemen 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 present 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 Yemen commits itself to accord all categories of creditors -and in particular creditors not participating in the present Agreed Minute, commercial banks and suppliers- a treatment not more favourable than that accorded by the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Yemen with its creditors not listed in the present 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 exposure of the creditor countries not listed in the present Agreed Minute, the level of cash payments received by those creditor countries from the Government of the Republic of Yemen as compared to their share in the Yemen'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 Yemen and the creditors not listed in the present Agreed Minute.
Cut-off date:
January 01, 1993
Organisation of the session:
The meeting was chaired by Mrs Stéphane Pallez, Co President of the Paris Club
The head of the debtor country's delegation was Mr. Alawi S. Al Salami, Vice Prime Minister, Minister of Finance
Treatment of maturities falling due from July 01, 1997 up to October 31, 2000
Repayment profile:
Treatment under Naples terms (cancellation rate 67%)
repayment of non ODA credits over 23 years, with 6 years of grace
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) the amounts of outstanding loans [treated in the present Agreed Minute] as regards official development aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated inn the present Agreed Minute], up to 20% of the amounts of outstanding credits as of August 31, 1996 or up to an amount of 15 million SDR, whichever is higher.
Entry-into-force provision
Agreement implemented on December 31, 1998
Good will clause
In response to the request of the representatives of the Government of the Republic of Yemen, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Republic of Yemen's debt service payments falling due after October 31, 2000 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before January 1, 1993 provided :
- that the Republic of Yemen continues to have an appropriate arrangement with the International Monetary Fund ;
- that the Republic of Yemen has reached with other creditors effective arrangements meeting the conditions [of the present Agreed Minute] and has reported in writing to the Chairman of the Paris Club, pursuant to [the present Agreed Minute] ;
- and that the Republic of Yemen has complied with all conditions set out in this Agreed Minute.
Phases
First phase : From July 01, 1997 up to December 31, 1998, implemented on December 31, 1998
Second phase : From January 01, 1999 up to December 31, 1999, implemented on April 28, 1999
Third phase : From January 01, 2000 up to October 31, 2000, not implemented
De minimis threshold of 500 000 SDR
Payment of non-consolidated amounts before March 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 Yemen commits itself to promptly negotiate debt reduction arrangements with all its external creditors.
Consequently, the Government of the Republic of Yemen commits itself not to accord any category of creditors -and in particular creditor countries not participating in the present 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.
