UGANDA Debt treatment - April 24, 1998
Supporting agreements with the international institutions
IMF programme supported by an Arrangement under the Enhanced Structural Adjustment Facility (ESAF) approved on November 10, 1997
Amounts treated
$147 million
Accorded treatment
Completion point reached on April 8, 1998
Categories of debt treated
Treatment of arrears as of March 31, 1998
Treatment of the stock as of April 1, 1998
Repayment profile
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 Agreed Minute as regards official development aid loans and direct Government loans; (ii) the amounts of other outstanding credits treated in the Agreed Minutes, up to 20% of the amounts of outstanding credits as of June 30, 1992 or up to an amount of 15 million SDR, whichever is higher.
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 Uganda has not met its payments obligations as specified in the Agreed Minutes, the provisions of the Agreed Minutes will become null and void.
De minimis threshold of 1,100,000 SDR
Payment of non-consolidated amounts before September 30, 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 Uganda 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 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 the Republic of Uganda commits itself 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 the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Uganda with its creditor countries not listed in the Agreed Minutes 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 Minutes, the level of cash payments received by those creditor countries from the Government of the Republic of Uganda as compared to their share in the Republic of Uganda'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 Uganda and the creditor countries not listed in the Agreed Minutes.
The Government of the Republic of Uganda will inform in writing the Chairman of the Paris Club no later than October 31, 1998 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.
Organisation of the session
Have attended:
- FRANCE
- ISRAEL
- ITALY
- UNITED KINGDOM
- UNITED STATES OF AMERICA
- AUSTRIA
- BELGIUM
- CANADA
- DENMARK
- FINLAND
- GERMANY
- JAPAN
- NETHERLANDS
- NORWAY
- RUSSIAN FEDERATION
- SPAIN
- SWEDEN
- IMF
- World Bank