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) the amounts of outstanding loans treated in the Agreed Minutes as regards official development aid loans; (ii) the amounts of other outstanding credits, loans and consolidations treated in the Agreed Minutes, up to 20% of the amounts of outstanding credits as of August 31, 1996 or up to an amount of 15 million SDR, whichever is higher.

Entry-into-force provision

Agreement implemented on December 31, 1998

Good will clause

In response to the request of the representatives of the Government of the Republic of Yemen, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Republic of Yemen's debt service payments falling due after October 31, 2000 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before January 1, 1993 provided:

- that the Republic of Yemen continues to have an appropriate arrangement with the International Monetary Fund;

- that the Republic of Yemen has reached with other creditors effective arrangements meeting the conditions of the Agreed Minutes and has reported in writing to the Chairman of the Paris Club, pursuant to the Agreed Minutes;

- and that the Republic of Yemen has complied with all conditions set out in the Agreed Minutes.

Phases

• First phase : From July 1, 1997 up to December 31, 1998, implemented on December 31, 1998
• Second phase : From January 1, 1999 up to December 31, 1999, implemented on April 28, 1999
• Third phase : From January 1, 2000 up to October 31, 2000, not implemented

De minimis threshold of 500,000 SDR

Payment of non-consolidated amounts before March 31, 1998