- Agreement on the Debt service suspension Initiative (DSSI)

- Amendment under the extension of the DSSI signed on January 4, 2021

- Amendment under the final extension of the DSSI signed on November 30, 2021

1/ Treatment of arrears as of April 30, 2020 and maturities falling due from May 1, 2020 up to December 31, 2020

2/ Treatment of maturities from January 1, 2021 up to June 30, 2021

3/ Treatment of maturities from July 1, 2021 up to December 31, 2021

Treatment under DSSI terms

Duration of the suspension of payment:

- from May 1, 2020 until end- 2020

- from January 1, 2021 to June 30, 2021

- from July 1, 2021 to December 31, 2021

Perimeter of maturities and cut-off date

Perimeter of maturities and cut-off date

• Suspension of principal repayments and interest payments
• Cut-off date protecting new financing in case of possible future restructuring: March 24, 2020

Modalities for the debt service suspension

NPV-neutral for the suspension of payments

Repayment period:

- 3 years with a one-year grace period (4 years total)

- 5 years, with a one-year grace period (6 years total)

Treatment will be achieved either through rescheduling or refinancing

The Government of the Union of the Comoros is required to commit:

• to use the created fiscal space to increase social, health or economic spending in response to the crisis. A monitoring system is expected to be put in place by the IFIs;
• to disclose all public sector financial commitments (debt) , respecting commercially sensitive information. Technical Assistance is expected to be provided by the IFIs as appropriate to achieve this;
• to comply with the debt limits on contracting new non-concessional during the suspension period agreed under the IMF Debt Limit Policy (DLP) or WBG policy.

Good will clause under the Memorandum of Understanding dated June 15, 2020 and its Amendment dated January 4, 2021

If the Government of the Union of the Comoros has fulfilled all its commitments under the Memorandum of Understanding dated  June 15, 2020 and its Amendment dated January 4, 2021, the Participating Creditor Countries declare their intention to consider before July 1, 2021 a revision of the Memorandum of Understanding and its Amendment in order to possibly extend the period during which payments due on concerned debts are to be deferred, if the economic and financial situation requires to extend further the Debt Service Suspension Initiative.