DOMINICAN REPUBLIC Debt treatment - October 21, 2005
Supporting agreements with the international institutions
Programme with the IMF: Stand-by Arrangement approved on January 31, 2005
Total external debt of the country
$6,414 million as of December 31, 2004, representing 54,1% of GDP (IMF report dated 30/09/2005)
$2,047 million of which being due to Paris Club as of January 1, 2005
Amounts treated
Categories of debt treated
Treatment of maturities falling due from January 1, 2005 up to December 31, 2005
Repayment profile
Treatment under Classic terms
- repayment of non ODA credits over 12 years, with 5 years of grace
- repayment of ODA credits over 12 years with 5 years of grace
The rates and the conditions of interest of the Official Development Assistance (ODA) loans, should be at least as favourable as the original concessional rates applying to consolidated loans and in any case, not higher than the Appropriate Market Rate.
Specific provisions
Possibility to conduct debt swaps
On a voluntary and bilateral 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 as regards Official Development Assistance loans; (ii) the amounts of other outstanding credits, up to 10% of the amounts of outstanding credits as of September 30, 1991 or up to an amount of $10 million, whichever is higher.
Good will clause
The Participating Creditor Countries will review the external financing needs of the Dominican Republic in December 2005 in connection with satisfying the conditions for the 3rd review under the IMF Stand-by Arrangement with a view to providing additional relief in 2006, if needed, to support the programme.
Payment of non-consolidated amounts before April 30, 2006
Comparability of treatment provision
In order to secure comparable treatment of its debt due to its other external public or private creditors, the Government of the Dominican Republic commits to seek promptly from its external creditors debt reorganization arrangements on terms comparable to those set forth in the Agreed Minutes, while trying to avoid discrimination among different categories of creditors. The Government of the Dominican Republic commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minutes, and private sector- a treatment not more favourable than that accorded to the Participating Creditor Countries for credits of comparable maturity.
For the purpose of the comparison between the arrangements concluded by the Government of the Dominican Republic with its creditors not listed in the Agreed Minutes and with the Participating Creditor Countries, all relevant elements shall be taken into account, including the real exposure of the creditor not listed in the Agreed Minutes, the level of cash payments received by those creditors from the Government of the Dominican Republic as compared to their share in the Dominican Republic's external debt, the nature and characteristics of all treatments 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 Dominican Republic and the creditors not listed in the Agreed Minutes.
Paris Club creditors assess that, on the basis of the information provided by the authorities of the Dominican Republic, the restructuring agreements reached with private sector creditors, in particular the bond restructuring in July 2005 and the rescheduling agreement signed with the commercial banks on October 17, 2005, if implemented, meet the comparability of treatment requirement of the Agreed Minutes.
Cut-off date
June 30, 1984
Organisation of the session
The meeting was chaired by Mr. Ramon Fernandez, Vice-Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Juan Temistocles Montas & Mr. Vicente Bengoa, Technical Secretary of the Presidency & Finance Secretary.
- FRANCE
- GERMANY
- JAPAN
- SPAIN
- UNITED STATES OF AMERICA
- BELGIUM
- CANADA
- DENMARK
- ITALY
- NORWAY
- SWITZERLAND
- IMF
- Inter-American Development Bank
- European Commission
- UNCTAD