Treatment under Cologne terms

• repayment of non ODA credits over 23 years, with 6 years of grace
• repayment of ODA credits over 40 years with 16 years of grace

On an exceptional basis, considering the Republic of Guinea's limited capacity of payment, creditors have also agreed to defer and reschedule over an eight-year period the repayment of maturities due by the Republic of Guinea on short term and post cut-off date debts; and, over a three-year period the arrears on those claims. They also agreed to defer all the interest due on the amounts treated.

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, up to 20% of the amounts of outstanding credits as of December 31, 1992 or up to an amount of 20 million SDR, whichever is higher.

Phases

• First phase : From January 1, 2012 up to December 31, 2012, implemented at the signature of the agreement
• Second phase : From January 1, 2013 up to December 31, 2013, not implemented
• Third phase : From January 1, 2014 up to December 31, 2014, not implemented

The Republic of Guinea was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2000 and was declared to have reached its Decision Point in December 2000. In this context, the Republic of Guinea 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 Guinea'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 Guinea and creditor countries not listed in the Agreed Minutes.

Consequently, the Republic of Guinea 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.