Supporting agreements with the international institutions:
IMF program under the stand by approved on May 29, 1998
Amounts treated:
$588 million
Categories of debt treated:
Treatment of arrears as of June 30, 1998
Treatment of maturities falling due from July 01, 1998 up to April 30, 1999
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
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 [treated in the present Agreed Minute] as regards official development aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated in the present Agreed Minute], up to 20% of the amounts of outstanding credits as of June 30, 1998 or up to an amount of 20 million SDR, whichever is higher.
Good will clause
In response to the request of the representatives of the Government of Bosnia and Herzegovina, the Participating Creditor Countries agreed in principle to hold a meeting to consider the matter of the Government of Bosnia and Herzegovina's debt service payments falling due after April 30, 1999 and relating to loans or credits mentioned in [the present Agreed Minute] provided :
- that Bosnia and Herzegovina continues to have an appropriate arrangement with the International Monetary Fund ;
- that Bosnia and Herzegovina has reached with other creditors effective arrangements meeting the conditions described in [the present Agreed Minute] and has reported in writing to the Chairman of the Paris Club, pursuant to [the present Agreed Minute] ;
- and that Bosnia and Herzegovina has complied with all conditions set out in the present Agreed Minute.
Free transferability provision
The Government of Bosnia and Herzegovina 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 or Observer Creditor Countries or their appropriate institutions.
De minimis threshold of 550 000 SDR
Payment of non-consolidated amounts before April 30, 1999
Comparability of treatment provision:
In order to secure comparable treatment of public and private external creditors on their debts, the Government of Bosnia and Herzegovina commits itself to seek from its external creditors, in particular banks and suppliers, rescheduling or refinancing arrangements on terms comparable to those set forth in this Agreed Minute for credits of comparable maturity, making sure to avoid inequality between different categories of creditors.
The Government of Bosnia and Herzegovina will seek to secure, from each of its Creditor Countries not participating in this Agreed Minute, rescheduling or refinancing arrangements on terms comparable to those set forth in this Agreed Minute. The Government of Bosnia and Herzegovina agrees not to accord any such Creditor Country repayment terms more favourable to such Creditor Countries than those accorded to the Participating Creditor Countries.
The Government of Bosnia and Herzegovina agrees that it will promptly negotiate rescheduling or refinancing arrangements with all other creditors on debts of a comparable term.
Payment of non-consolidated amounts before October 31, 2001
Comparability of treatment provision:
In the context of its eligibility to the Enhanced Debt Initiative for the Heavily Indebted Poor Countries decided by the Boards of the IMF and the International Development Association on February 8, 2000 and having reached its completion point under the Enhanced Debt Initiative for the Heavily Indebted Poor Countries as indicated in the decision by the International Development Association and the IMF Boards respectively dated June 5 and June 8, 2001, the Government of the Republic of Bolivia commits itself to seek promptly from all its external creditors which are not participating in the Agreed Minute their appropriate contribution in terms of debt relief to the Enhanced Debt Initiative for the Heavily Indebted Poor Countries, 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 from the Government of the Republic of Bolivia as compared to their share in Bolivia'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 Bolivia and creditor countries not listed in the Agreed Minute.
Consequently, the Government of the Republic of Bolivia commits itself not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minute, commercial banks and suppliers- a treatment more favourable than that accorded the Participating Creditor Countries.
Cut-off date:
December 31, 1985
Organisation of the session:
The meeting was chaired by Mrs Stéphane PALLEZ, Co Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Juan Antonio MORALES, Governor of the Central Bank of Bolivia.
Treatment under Lyon terms (cancellation rate of 80%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 80%
repayment of ODA credits over 40 years with 16 years of grace
Specific provisions:
Possibility to conduct debt swaps
On a voluntary 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 [treated in the present Agreed Minute]as regards official development aid loans and direct Government loans ; (ii) the amounts of other outstanding credits [treated in the Agreed Minute], up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 30 million SDR, whichever is higher.
Free transferability provision
The Government of the Republic of Bolivia guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Bolivia for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been or will be deposited in the Central Bank of Bolivia.
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 the Republic of Bolivia has not met its payments obligations as specified in the Agreed Minute, the provisions [...] of the Agreed Minute will become null and void.
De minimis threshold of 2 000 000 SDR
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 Bolivia 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 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 Bolivia 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 favourable than that accorded the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Bolivia with its creditor countries not listed in the 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 real 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 Bolivia as compared to their share in the Republic of Bolivia'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 Bolivia and the creditor countries not listed in the Agreed Minute.
The Government of the Republic of Bolivia will inform in writing the Chairman of the Paris Club no later than June 30, 1999 of the progress made for this purpose in negotiations with other creditors. It will inform afterwards on a semestrial basis, the Chairman of the Paris Club of the status of its relationships with other creditors.
