Substantial reduction of the stock of debt of the Democratic Republic of Sao Tome and Principe, this country having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) in March 2007
Categories of debt treated:
Treatment of arrears as of February 28, 2007
Treatment of the stock as of March 01, 2007
Repayment profile:
Treatment under HIPC Initiative Exit terms
Comparability of treatment provision:
The Democratic Republic of Sao Tome and Principe was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2000 and was declared to have reached its Completion Point in March 2007. In this context, the Democratic Republic of Sao Tome and Principe commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 24 May 2007, 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 Democratic Republic of Sao Tome and Principe'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 Democratic Republic of Sao Tome and Principe and creditor countries not listed in the Agreed Minutes dated 24 May 2007.
Consequently, the Democratic Republic of Sao Tome and Principe commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 24 May 2007, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
April 01, 1999
Organisation of the session:
The meeting was chaired by Mr. Ambroise Fayolle, Co Chairman of the Paris Club
The head of the debtor country's delegation was Mrs Maria dos Santos Tebus Torres, Vice Prime Minister and Minister of Planning and Finance
Repayment of ODA credits over 40 years with 16 years of grace
Specific provisions:
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Government of Sao Tome and Principe under the Enhanced HIPC Initiative, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the Completion Point designed to examine the question of the outstanding debt stock and to make the necessary effort in its favour to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Government of Sao Tome and Principe maintains satisfactory relations with the Participating Creditor Countries and a sound adjustment track record;
- Sao Tome and Principe reaches its Completion Point under the enhanced HIPC initiative.
Phases
First phase : From May 01, 2001 up to December 31, 2005, implemented at the signature of the agreement
Second phase : From January 01, 2006 up to December 31, 2006, implemented on September 29, 2006
Third phase : From January 01, 2007 up to December 31, 2007, implemented on May 24, 2007
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 Sao Tome and Principe commits to seek from all its external creditors debt reduction and reorganization arrangements on terms comparable in net present value to those set forth in the Terms of Reference dated September 13, 2005 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 Sao Tome and Principe commits to accord all categories of creditors -and in particular creditor countries not participating in the Terms of Reference, 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 Sao Tome and Principe with the non participating countries and those concluded with the Participating Creditor Countries, all relevant elements shall be taken into account, including the exposure of the creditors not listed in these Terms of Reference, the level of cash payments received by those creditors from the Government of Sao Tome as compared to their share in Sao Tome'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 Sao Tome and Principe and the creditors not listed in the Terms of Reference.
Cut-off date:
April 01, 1999
Organisation of the session:
The meeting was chaired by M. Ambroise Fayolle, Co-President of the Paris Club.
The head of the debtor country's delegation was Mme Joana Damiana da Graça Varela, Director of Treasury and Government Assets.
This agreement reduces by over 90% the debt service due to the Paris Club creditors during the Fund supported program under the Stand-By Arrangement. The representatives of the Creditor Countries agreed on a debt treatment to ensure long term debt sustainability. To this end, they recommended that their Governments deliver a treatment providing a rescheduling of the stock of debt over 20 years, including a 7-year grace period. Consideration is also being given to additional debt relief on a bilateral basis.
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) the amounts of outstanding credits, loans and consolidations, other than Official Development Assistance loans, up to 20% of the amounts of outstanding credits as of 30 April 2012 or up to an amount of 5 million SDR, whichever is higher.
Phases
First phase : From May 01, 2012 up to June 30, 2013, implemented at the signature of the agreement
Second phase : From July 01, 2013 up to June 30, 2014, implemented on October 08, 2013
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 Saint Kitts and Nevis commits to seek promptly from all its bilateral and commercial external creditors debt reorganisation arrangements on terms comparable to those set forth in the Agreed Minutes dated 24 May 2012, while trying to avoid discrimination among different categories of creditors. Consequently, the Government of Saint Kitts and Nevis commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 24 May 2012, and private creditors- 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 Saint Kitts and Nevis with its creditors not listed in these Agreed Minutes on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements shall be taken into account, including the real exposure of the creditors not listed in the Agreed Minutes dated 24 May 2012, the level of cash payments received by those creditors from the Government of Saint Kitts and Nevis as compared to their share in Saint Kitts and Nevis' 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 Saint Kitts and Nevis and the creditors not listed in the Agreed Minutes dated 24 May 2012.
Cut-off date:
April 30, 2012
Organisation of the session:
The meeting was chaired by Ms. Delphine d'AMARZIT, Co-Chairperson of the Paris Club.
The head of the debtor country's delegation was Rt Hon. Denzil L. DOUGLAS, Primer Minister and Minister of Finance.
Payment of non-consolidated amounts before December 01, 2005
Comparability of treatment provision:
The Republic of Rwanda was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2000 and was declared to have reached its Completion Point on April 13, 2005. In this context, the Republic of Rwanda commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes, 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 Rwanda'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 Republic of Rwanda and creditor countries not listed in these Agreed Minutes. Consequently, the Republic of Rwanda commits not to accord any category of creditors -and in particular creditor countries not participating in these Agreed Minutes, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
December 31, 1994
Organisation of the session:
The meeting was chaired by Mr. Ramon Fernandez, Vice President of the Paris Club.
The head of the debtor country's delegation was Mr. Donald Kaberuka, Minister of Finance and Economic Planning.
