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 mentioned in Article II-1 other than ODA loans, up to 20% of the amounts of outstanding credits as of January 1, 2005 after the implementation of the First Reduction or up to an amount of 20 million SDR, whichever is higher. Participating creditor countries and the Republic of Iraq 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 Iraq'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 Iraq.
Cancellation phasing
First Reduction : cancellation of 30% of the debt stock as of the date of the signature of the agreement.
Second Reduction : cancellation of 30% of the initial debt stock as soon as an Arrangement with the IMF in the upper credit tranches is approved, implemented on 23 December 2005.
Third Reduction : cancellation of 20% of the initial debt stock as soon as the last review of an Agreement with the IMF in the upper credit tranches is approved, implemented on 22 December 2008.
Payment of non-consolidated amounts before June 01, 2005
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 Iraq commits 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 Minutes 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 Iraq commits to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minutes, 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 Iraq with its creditors not listed in the present Agreed Minutes 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 present Agreed Minutes, the level of cash payments received by those creditors from the Government of the Republic of Iraq as compared to their share in the Republic of Iraq'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 Iraq and the creditors not listed in the present Agreed Minutes.
Cut-off date:
May 22, 2003
Organisation of the session:
The meeting was chaired by Mr. Jean-Pierre Jouyet, Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Adil A. Mahdi, Minister of Finance.
repayment of non ODA credits over 18 years, with 5 years of grace
repayment of ODA credits over 20 years with 10 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) all ODA loans ; (ii) amounts of outstanding credits, loans and consolidations on debts mentioned in Article I paragraph 1 and not granted under ODA conditions, up to 20% of the amounts of outstanding credits as of March 31, 2000 or up to an amount of 30 million SDR, whichever is higher. The Participating Creditor Countries and the Republic of Indonesia shall inform the Chairman of the Group of Official Creditor Countries of the Republic of Indonesia, who shall inform other Creditors, of the debt swap agreements prior to their implementation. All elements necessary to evaluate the operation, its impact on the Republic of Indonesia's economy and on the evolution of creditors' exposure shall be transmitted to the Chairman of the Group of Official Creditor Countries of the Republic of Indonesia, 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 Indonesia.
Phases
First phase : From April 01, 2002 up to December 31, 2002, implemented at the signature of the agreeement
Second phase : From January 01, 2003 up to December 31, 2003, implemented on May 23, 2003
De minimis threshold of 1 000 000 SDR
Payment of non-consolidated amounts before June 01, 2002
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 Indonesia commits to seek from all its external creditors a rescheduling or a refinancing on terms comparable to those set forth in the present Memorandum of Understanding for credits of comparable maturity, while trying to avoid any discrimination among various categories of creditors.
The Government of the Republic of Indonesia commits not to accord any external creditor conditions of repayment more favourable than those accorded by the Participating Creditor Countries for credits of comparable maturity.
The Government of the Republic of Indonesia shall inform in writing the Chairman of the Group of Official Creditor Countries of the Republic of Indonesia not later than December 1, 2002 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. Afterwards, the Government of the Republic of Indonesia shall further inform in writing regularly the Chairman of the Group of Official Creditor Countries of the Republic of Indonesia of the status of its negotiations with other creditors, as well as of the payments made to them.
Cut-off date:
July 01, 1997
Organisation of the session:
The meeting was chaired by Mr. Ambroise Fayolle, Vice-President of the Paris Club.
The head of the debtor country's delegation was Mr. Dorodjatun Kuntjoro-Jakti, Coordinating Minister for Economic Affairs.
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 and loans on debts [treated in the present Agreed Minute] other than ODA loans, up to 10% of the amounts of outstanding credits as of March 31, 2000 or up to an amount of 10 million SDR, whichever is higher. Participating Creditor Countries and the Republic of Indonesia will inform the Chairman of the Group of the Official Creditor Countries of Indonesia, who will inform other Creditors, of the debt swap agreements prior to their implementation. All elements necessary to evaluate the operation, its impact on the Republic of Indonesia's economy and on the evolution of creditor's exposure will be transmitted to the Chairman of the Group of the Official Creditor Countries of Indonesia, 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 to the Republic of Indonesia.
Entry-into-force provision
The provisions of the present Memorandum of Understanding will enter into force provided that the International Monetary Fund has approved no later than June 5, 2000, the first review of the program supported by an arrangement under the Extended Fund Facility approved on February 4, 2000. The International Monetary Fund will inform the Chairman of the Group of the Official Creditor Countries of Indonesia of the relation between the Republic of Indonesia and the International Monetary Fund.
In the event that this review has not been effected by June 5, 2000, the payments covered by the present Memorandum of Understanding will be due according to the original contracts.
Agreement implemented on June 05, 2000
Free transferability provision
The Government of the Republic of Indonesia will continue to allow unrestricted and immediate access to the foreign exchange required for servicing private sector debts owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions.
Phases
First phase : From April 01, 2000 up to March 31, 2001, implemented on June 05, 2000
Second phase : From April 01, 2001 up to March 31, 2002, implemented on September 25, 2001
De minimis threshold of 1 000 000 SDR
Payment of non-consolidated amounts before August 31, 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 Indonesia commits itself to seek promptly from all its external creditors a rescheduling or a refinancing on terms comparable to those set forth in the present Memorandum of Understanding for credits of comparable maturity, while trying to avoid any discrimination among various categories of creditors.
The Government of the Republic of Indonesia commits itself not to accord any external creditor conditions of repayment more favourable than those accorded by the Participating Creditor Countries for credits of comparable maturity.
The Government of the Republic of Indonesia will inform in writing the Chairman of the Group of Official Creditor Countries of Indonesia not later than November 30, 2000 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. Afterwards, the Government of the Republic of Indonesia will further inform in writing regularly the Chairman of the Group of Official Creditor Countries of Indonesia of the status of its negotiations with other creditors, as well as of the payments made to them
Treatment of maturities falling due from August 06, 1998 up to March 31, 2000
Repayment profile:
Treatment under Ad Hoc terms
Specific provisions:
Free transferability provision
The Government of the Republic of Indonesia will continue to allow unrestricted and immediate access to the foreign exchange required for servicing private sector debts owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions.
Phases
First phase : From August 06, 1998 up to March 31, 1999
Second phase : From April 01, 1999 up to March 30, 2000, implemented on December 24, 1999
Payment of non-consolidated amounts before December 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 Indonesia commits itself to seek promptly from all its external creditors a rescheduling or a refinancing on terms comparable to those set forth in the present Memorandum of Understanding for credits of comparable maturity, while trying to avoid any discrimination among various categories of creditors.
The Government of the Republic of Indonesia commits itself not to accord any external creditor conditions of repayment more favourable than those accorded by the Participating Creditor Countries for credits of comparable maturity.
The Government of the Republic of Indonesia will inform in writing the Chairman of the Group of Official Creditor Countries of Indonesia not later than December 31, 1998 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. Afterwards, the Government of the Republic of Indonesia will further inform in writing regularly the Chairman of the Group of Official Creditor Countries of Indonesia of the status of its negotiations with other creditors, as well as of the payments made to them.
Payment of non-consolidated amounts before December 01, 2005
Comparability of treatment provision:
The Republic of Honduras was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 1999 and was declared to have reached its Completion Point respectively on March 28 and April 5, 2005. In this context, the Republic of Honduras commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated May 12, 2005, 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 shall be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Honduras' 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 Honduras and creditor countries not listed in the Agreed Minutes.
Consequently, the Republic of Honduras commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
June 01, 1990
Organisation of the session:
The meeting was chaired by M. Ramon Fernandez, Vice President of the Paris Club.
The head of the debtor country's delegation was M. William Chong Wong, Minister of Finance.
