$163 million of which being due to Paris Club as of December 31, 2008
Amounts treated:
$163 million
Categories of debt treated:
1) Immediate Rescheduling and deferral of the arrears due as of 31 October 2008 inclusive and maturities due from 1 November 2008 to 30 June 2009.
2) First Reduction and Reorganization on the outstanding amounts as of 1 July 2009
3) Second Reduction on the remaining outstanding amounts as of 1 July 2010.
Repayment profile:
Treatment under Ad Hoc terms
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) all Official Development Assistance loans;
(ii) amounts of outstanding credits, loans and consolidations on debts other than ODA loans, up to 20% of the amounts of outstanding credits after the implementation of the Second Reduction on 1st July 2010 or up to an amount of 5 million SDR, whichever is higher.
Participating creditor countries and the Republic of Seychelles 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 Republic of Seychelles' 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 Seychelles.
Cancellation phasing
First Reduction and Reorganization: - Cancellation of 22.5% of the outstanding amounts as of 1 July 2009, after implementation of the rescheduling - Entry into force on 17 July 2009
Second Reduction: - Cancellation of 29.03% of the remaining outstanding amounts as of 1 July 2010, after implementation of the Firs Reduction and Reorganization - Entry into force on 23 July 2010
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 Seychelles commits to seek promptly from all its external commercial and bilateral creditors debt reduction and reorganization arrangements on terms comparable in net present value to those set forth in the Agreed Minutes dated 16 April 2009 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 Seychelles commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 16 April 2009, commercial banks and bond holders - 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 Republic of Seychelles with its creditors not listed in the Agreed Minutes dated 16 April 2009 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 creditors not listed in the Agreed Minutes dated 16 April 2009, the level of cash payments received by those creditors from the Government of the Republic of Seychelles as compared to their share in the Republic of Seychelles' 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 Seychelles and the creditors not listed in the Agreed Minutes dated 16 April 2009.
Cut-off date:
December 31, 2008
Organisation of the session:
The meeting was chaired by Mr. Benoît COEURE, Co Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Danny FAURE, Minister of Finance.
On a 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: (i) the amounts of outstanding loans as regards ODA loans ; (ii) the amounts of other outstanding credits, up to 20% of the amounts of outstanding credits as of June 30, 1991 or up to an amount of 30 million SDR, whichever is higher.
Payment of non-consolidated amounts before December 31, 2004
Comparability of treatment provision:
The Republic of Senegal was declared eligible to the Enhanced HIPC Initiative by the IDA and the IMF in June 2000 and was declared to have reached its Completion Point respectively on April 15 and 19, 2004. In this context, the Republic of Senegal commits to seek promptly from all its external creditors which are not participating in the present Agreed Minute, 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.
Cut-off date:
January 01, 1983
Organisation of the session:
The meeting was chaired by Mr. Ramon Fernandez, Vice-Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Abdoulaye Diop, Minister of Economy and Finance.
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Republic of Senegal under the enhanced Debt Initiative for the Heavily Indebted Poor Countries, 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 Senegal's outstanding debt stock and to make the necessary effort, in favour of the Republic of Senegal to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :
- the Republic of Senegal 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 Senegal has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries
De minimis threshold of 100 000 SDR
Payment of non-consolidated amounts before October 30, 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 Senegal commits itself to seek from all its external creditors debt reduction and reorganisation 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 Senegal commits itself to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- a treatment not more favorable than that accorded to the Participating Creditor Countries for credits of comparable maturity and legal nature.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Senegal 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 creditors not listed in the present Agreed Minute, the level of cash payments received by those creditors from the Government of the Republic of Senegal as compared to their share in the Senegal'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 the Republic of Senegal and the creditors not listed in the present Agreed Minute.
Treatment of maturities falling due from June 01, 1998 up to December 31, 2000
Repayment profile:
Treatment under Naples terms (cancellation rate of 67%)
Specific provisions:
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 Senegal has not met its payments obligations as specified in the present Agreed Minute, the provisions [...] of the present Agreed Minute will become null and void ; b) the Government of Senegal agrees that the International Monetary Fund inform the Chairman of the Paris Club regarding the status of the Senegal's relations with the International Monetary Fund.
De minimis threshold of 1 000 000 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 Senegal 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 Senegal commits itself to accord all categories of creditors -and in particular creditor countries 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 Senegal with its creditor countries 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 Senegal as compared to their share in the Senegal'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 Senegal and the creditor countries not listed in the present Agreed Minute.
The Government of Senegal will inform regularly in writing the Chairman of the Paris Club of the progress made for this purpose in the negotiations with all its external creditors. A first report should be provided to the Chairman of the Paris Club by December 17, 1998.
The Government of Senegal will inform in writing without delay the Chairman of the Paris Club of the content of any agreement reached with its other external creditors.
The Government of Senegal will inform in writing the Chairman of the Paris Club, on a yearly basis, of the cash payments made by Senegal to its external creditors, and especially to the creditor countries not participating in the present Agreed Minute.
