SEYCHELLES Debt treatment - April 16, 2009
Supporting agreements with the international institutions
Programme concluded with the IMF supported by a two-year Stand-by arrangement approved on November 14, 2008
Total external debt of the country
$760 million as of December 31, 2008
$163 million of which being due to Paris Club as of December 31, 2008
Amounts treated
$163 million
Categories of debt treated
1) Immediate Rescheduling and deferral of the arrears due as of October 31, 2008 inclusive and maturities due from November 1, 2008 to June 30, 2009.
2) First Reduction and Reorganization on the outstanding amounts as of July 1, 2009
3) Second Reduction on the remaining outstanding amounts as of July 1, 2010
Repayment profile
Treatment under Ad Hoc terms
Specific provisions
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) amounts of outstanding credits, loans and consolidations on debts other than ODA loans, up to 20% of the amounts of outstanding credits after the implementation of the Second Reduction on July 1, 2010 or up to an amount of 5 million SDR, whichever is higher.
Participating creditor countries and the Republic of Seychelles will inform semi-annually the Secretariat of the Paris Club, who will inform other Creditors, of the debt swap agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Seychelles' economy and on the evolution of creditor's exposure will be transmitted to the Secretariat, 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 of the Republic of Seychelles.
Cancellation phasing
First Reduction and Reorganization:
- Cancellation of 22.5% of the outstanding amounts as of July 1, 2009, after implementation of the rescheduling - Entry into force on July 17, 2009
Second Reduction:
- Cancellation of 29.03% of the remaining outstanding amounts as of July 1, 2010, after implementation of the Firs Reduction and Reorganization - Entry into force on July 23, 2010
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 Seychelles commits to seek promptly from all its external commercial and bilateral 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 Seychelles commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minutes, commercial banks and bond holders - a treatment not more favourable than that accorded to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Seychelles with its creditors 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 creditors not listed in the Agreed Minutes, the level of cash payments received by those creditors from the Government of the Republic of Seychelles as compared to their share in the Republic of Seychelles' 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 Seychelles and the creditors not listed in the Agreed Minutes.
Cut-off date
December 31, 2008
Organisation of the session
The meeting was chaired by Mr. Benoît COEURE, Co Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Danny FAURE, Minister of Finance.
- BELGIUM
- GERMANY
- ITALY
- JAPAN
- RUSSIAN FEDERATION
- SOUTH AFRICA
- SPAIN
- UNITED KINGDOM
- CANADA
- FINLAND
- NETHERLANDS
- NORWAY
- UNITED STATES OF AMERICA
- European Commission
- IMF
- UNCTAD
- World Bank