repayment of ODA credits over 40 years with 16 years of grace
Specific provisions:
Payment of non-consolidated amounts before October 31, 2003
Comparability of treatment provision:
The Republic of Mali 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.
The appropriate nature of the debt relief provided shall 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 shall be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Mali'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 Mali and creditor countries not listed in the present Agreed Minute.
Consequently, the Republic of Mali commits 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 to the Participating Creditor Countries.
Cut-off date:
January 01, 1988
Organisation of the session:
The meeting was chaired by Mr. Ambroise Fayolle, Vice president.
The head of the debtor country's delegation was Mr. Bassary Touré, Ministry of Economy and Finances.
repayment of ODA credits over 40 years with 16 years of grace
Rescheduling of loans, credits and consolidations granted under ODA conditions at rates and conditions of interest at least as favorable as the concessional rate applying to those loans, and in any case not more than the Appropriate Market Rate.
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 ODA loans;
(ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of 31 December 2000 or up to an amount of SDR 5 million, whichever is higher.
Participating Creditor Countries and the Government of the Republic of Malawi shall inform semi-annually the Secretariat of the Paris Club, who shall inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Malawi's economy and on the evolution of Creditor's exposure shall 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 Malawi.
Payment of non-consolidated amounts before May 01, 2007
Comparability of treatment provision:
The Republic of Malawi 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 31 August 2006. In this context, the Republic of Malawi commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated October 19, 2006, 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 Malawi'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 Malawi and creditor countries not listed in these Agreed Minutes.
Consequently, the Republic of Malawi 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:
January 01, 1997
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 Mr. Goodall E. Gondwe, Minister of Finance.
Restructuring of the public external debt. Given its strong track-record of reforms as well as the burden of its external indebtedness, Malawi reached on December 21, 2000 its decision point under the enhanced HIPC Initiative and was granted an arrangement under the Poverty Reduction and Growth Facility with the International Monetary Fund.
Categories of debt treated:
Treatment of maturities falling due from December 01, 2000 up to September 01, 2006
Repayment profile:
Treatment under Cologne terms (cancellation rate of 90%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 90%
repayment of ODA credits over 40 years with 16 years of grace
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) all ODA loans ; (ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of December 31, 2000 or up to an amount of SDR 5 million, whichever is higher. Participating creditor countries and the Government of the Republic of Malawi will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Malawi'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 Malawi.
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Republic of Malawi 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 Malawi's outstanding debt stock and to make the necessary effort, in favor of the Republic of Malawi to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :
- the Republic of Malawi 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 Malawi 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 regarding the conditions for the entry into force of the phases. hereabove. 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 Agreed Minute they may declare part or all of the provisions set forth in the Agreement 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 November 17, 2003
Third phase : From January 01, 2003 up to September 01, 2006, implemented on November 17, 2003
De minimis threshold of 100 000 SDR
Payment of non-consolidated amounts before April 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 Malawi 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 Agreed Minute dated January 25, 2001 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 Malawi commits itself to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minute, commercial banks and suppliers- a treatment not more favorable 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 Malawi with its creditor countries not listed in the Agreed Minute on the one hand, and arrangements 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 Agreed Minute, the level of cash payments received by those creditor countries from the Government of the Republic of Malawi as compared to their share in the Republic of Malawi'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 Malawi and the creditor countries not listed in the Agreed Minute.
Cut-off date:
January 01, 1997
Organisation of the session:
The meeting was chaired by Mr. Bruno BEZARD, Vice Chairman of the Paris Club.
The head of the debtor country's delegation was Dr Mathews A.P. CHIKAONKA, Minister of Finance, Economy and Plan.
