INDONESIA Debt treatment - April 13, 2000
IMF programme under the EFF approved on February 4, 2000
$5,445 million
Treatment of maturities falling due from April 1, 2000 up to March 31, 2002
Treatment under Houston terms
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 and loans on debts treated in the Agreed Minutes 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 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 Memorandum of Understanding will be due according to the original contracts.
Agreement implemented on June 5, 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
De minimis threshold of 1,000,000 SDR
Payment of non-consolidated amounts before August 31, 2000
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 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.
Have attended:
