Restructuring of Chad's public external debt. Given its track-record of reforms as well as the burden of its external indebtedness, Chad reached in May 2001 its decision point under the enhanced HIPC Initiative. A three year arrangement under the Poverty Reduction and Growth Facility was approved by the International Monetary Fund on January 7, 2000.
Categories of debt treated:
Treatment of arrears as of April 30, 2001
Treatment of maturities falling due from May 01, 2001 up to September 30, 2005
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%
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 outstanding consolidations mentioned in paragraph 1. above, up to 10% of the amounts of outstanding credits as of March 31, 1994 or up to an amount of SDR 10 million, whichever is higher. Participating creditor countries and the Government of the Republic of Chad 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 Chad'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 Chad.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Republic of Chad under the enhanced Debt Initiative for the Heavily Indebted Poor Countries, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the completion point designed to examine the question of the Republic of Chad's outstanding debt stock and to make the necessary effort, in favour of the Republic of Chad to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :
- the Republic of Chad maintains satisfactory relations with the 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 Chad has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
Phases
First phase : From May 01, 2001 up to March 31, 2002, implemented at the signature of the agreement
Second phase : From April 01, 2002 up to March 31, 2003, implemented on November 13, 2002
Payment of non-consolidated amounts before November 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 Chad 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 Agreed Minute dated June 12, 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 Chad 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 Chad with its creditors 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 creditors not listed in the Agreed Minute, the level of cash payments received by those creditors from the Government of the Republic of Chad as compared to their share in the Chad'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 Chad and the creditors not listed in the Agreed Minute.
Cut-off date:
June 30, 1989
Organisation of the session:
The meeting was chaired by Mr. Bruno Bézard, Vice President of the Paris Club.
The head of the debtor country's delegation was Mr. Mahamat Louani Goadi, Finance Minister.
Treatment of maturities falling due from September 01, 2007 up to November 30, 2009
Repayment profile:
Treatment under Cologne terms (cancellation rate of 90%)
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 and consolidations as regards ODA debts;
(ii) the amounts of other outstanding credits, loans and consolidations referred to in the agreement, up to 20% of the amounts of outstanding loans, credits and consolidations as of 31 March 1994 or up to an amount of 15 million SDR, whichever is higher.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Government of the Central African Republic 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 Central African Republic's outstanding debt stock and to make the necessary effort in favour of the Central African Republic to allow it to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Government of the Central African Republic maintains satisfactory relations with the Participating Creditor Countries and a sound adjustment track record;
- the Executive Boards of the IMF and the IDA decide that the Central African Republic has reached its Completion Point under the enhanced HIPC initiative.
Phases
First phase : From September 01, 2007 up to November 30, 2007, implemented at the signature of the agreement
Second phase : From December 01, 2007 up to November 29, 2008, implemented on June 27, 2008
Third phase : From December 01, 2008 up to November 30, 2009, implemented on July 17, 2009
Comparability of treatment provision:
The Central African Republic was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in March 2007 and was declared to have reached its Decision Point in September 2007. In this context, the Central African Republic commits to seek promptly from all its external creditors which are not participating in these 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 Central African Republic'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 Central African Republic and creditor countries not listed in Agreed Minutes.
Consequently, the Central African Republic commits not to accord any category of creditors -and in particular creditor countries not participating in Agreed Minutes, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries
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 Nicolas NGANZE DOUKOU, Deputy Minister for Finance and Budget.
Restructuring of the external public debt. This agreement follows the approval by the International Monetary Fund (IMF) of an arrangement under the Poverty Reduction and Growth Facility on 22 December 2006 and the examination by the IMF and the World Bank (International Development Association) of the preliminary document under the Enhanced Heavily Indebted Poor Countries Initiative in March 2007.
Categories of debt treated:
Treatment of arrears as of November 30, 2006.
Treatment of maturities falling due from December 01, 2006 up to November 30, 2009
Repayment profile:
Treatment under Naples terms (cancellation rate of 67%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 67%
repayment of ODA credits over 40 years with 16 years of grace
The credits granted under Official Development Assistance conditions are to be repaid at interest rates at least as favourable as the orignal concessional rates applied to those loans.
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 and consolidations as regards ODA debts;
(ii) the amounts of other outstanding credits, loans and consolidations referred to in the agreement, up to 20% of the amounts of outstanding loans, credits and consolidations as of 31 March 1994 or up to an amount of 15 million SDR, whichever is higher.
Good will clause
Participating Creditor Countries agree to grant a topping-up of the debt reduction of the Agreed Minutes to Cologne terms once the Government of the Central African Republic reaches its Decision Point under the Enhanced Debt Initiative for the Heavily Indebted Poor Countries, provided that the Government of the Central African Republic maintains satisfactory relations with the Participating Creditor Countries and the IMF.
Phases
First phase : From December 01, 2006 up to November 30, 2007, implemented at the signature of the agreement
Second phase : From December 01, 2007 up to November 29, 2008, implemented on June 27, 2008
Third phase : From December 01, 2008 up to November 30, 2009, implemented on July 17, 2009
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 Central African Republic commits 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 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 Central African Republic commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minutes, 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 the Central African Republic with its creditors not listed in the Agreed Minutes 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 creditors not listed in the Agreed Minutes, the level of cash payments received by those creditors from the Government of the Central African Republic as compared to their share in the Central African Republic'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 Central African Republic and the creditors not listed in the Agreed Minutes.
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. Nicolas Nganze Doukou, Deputy Minister for Finance and Budget.
Reduction of the debt following Central African Republic’s having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 30 June 2009
Categories of debt treated:
Treatment of arrears as of May 31, 2009
Treatment of the stock as of June 01, 2009
Repayment profile:
Treatment under HIPC Initiative Exit terms
Creditors also commited on a bilateral basis to grant additional debt relief for an amount of US$ 6.5 million. As a result of this agreement and additional efforts, the Central African Republic's debt to Paris Club creditors will be reduced from US$ 59.3 million to US$ 3.7 million.
Comparability of treatment provision:
The Central African Republic was declared eligible to the enhanced HIPC Initiative by the IDA and the IMF in 2007 and was declared to have reached its Completion Point in June 2009. In this context, the Central African Republic commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 15 September 2009, 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 Central African Republic'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 Central African Republic and creditor countries not listed in the Agreed Minutes dated 15 September 2009.
Consequently, the Central African Republic commits not to accord any category of external creditors -and in particular creditor countries not participating in the Agreed Minutes dated 15 September 2009, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
January 01, 1983
Organisation of the session:
The meeting was chaired by Mr. Julien RENCKI, Vice Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Abdalla-Kadre ASSANE, Delegate Minister for Finance and Budget in charge of Fiscal Revenue Mobilisation.
