Reduction of the debt following Central African Republic’s having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 30 June 2009
Categories of debt treated:
Treatment of arrears as of May 31, 2009
Treatment of the stock as of June 01, 2009
Repayment profile:
Treatment under HIPC Initiative Exit terms
Creditors also commited on a bilateral basis to grant additional debt relief for an amount of US$ 6.5 million. As a result of this agreement and additional efforts, the Central African Republic's debt to Paris Club creditors will be reduced from US$ 59.3 million to US$ 3.7 million.
Comparability of treatment provision:
The Central African Republic was declared eligible to the enhanced HIPC Initiative by the IDA and the IMF in 2007 and was declared to have reached its Completion Point in June 2009. In this context, the Central African Republic commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 15 September 2009, their appropriate contribution in terms of debt relief to the enhanced HIPC Initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.
The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors as compared to their share in the Central African Republic'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 Central African Republic and creditor countries not listed in the Agreed Minutes dated 15 September 2009.
Consequently, the Central African Republic commits not to accord any category of external creditors -and in particular creditor countries not participating in the Agreed Minutes dated 15 September 2009, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
January 01, 1983
Organisation of the session:
The meeting was chaired by Mr. Julien RENCKI, Vice Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Abdalla-Kadre ASSANE, Delegate Minister for Finance and Budget in charge of Fiscal Revenue Mobilisation.
Treatment of arrears as of March 31, 2006. Treatment of the stock as of April 01, 2006
Repayment profile:
Treatment under HIPC Initiative Exit terms
Specific provisions:
Payment of non-consolidated amounts before December 31, 2006
Comparability of treatment provision:
The Republic of Cameroon was declared eligible to the Enhanced HIPC Initiative by the IDA and the IMF in October 2000 and was declared to have reached its Completion Point on 28 April 2006. In this context, the Republic of Cameroon commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated June 17, 2006, their appropriate contribution in terms of debt relief to the Enhanced HIPC Initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.
The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value terms of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements shall be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Cameroon'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 Republic of Cameroon and creditor countries not listed in the Agreed Minutes.
Consequently, the Republic of Cameroon commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date:
December 31, 1988
Organisation of the session:
The meeting was chaired by Mr. Ramon Fernandez, Vice President of the Paris Club.
The head of the debtor country's delegation was Mr. Polycarpe Abah Abah, Minister of Economy and Finance.
Treatment of maturities falling due from July 11, 2000 up to December 31, 2001
Repayment profile:
Treatment under Cologne terms (cancellation rate of 90%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 90%
repayment of ODA credits over 40 years with 16 years of grace
Specific provisions:
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favor of Burkina Faso under the enhanced Debt Initiative for the Heavily Indebted Poor Countries (HIPC), the Participating Creditor Countries declare their readiness in principle to hold at completion point a meeting designed to examine the question of Burkina Faso's outstanding debt stock and to make the necessary effort, in favor of Burkina Faso to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :
- Burkina Faso maintains satisfactory relations with participating Creditor Countries, fully implements all the agreements signed with them and maintains a sound adjustment track record ;
- the Boards of the International Monetary Fund and the International Development Association decide that Burkina Faso has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
De minimis threshold of 100 000 SDR
Payment of non-consolidated amounts before October 30, 2000
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 Burkina Faso commits itself to seek from all its external creditors debt reduction and reorganisation arrangements on terms comparable in net present value to those set forth in the present Agreed Minute 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 Burkina Faso commits itself to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- a treatment not more favorable than that accorded to the Participating Creditor Countries for credits of comparable maturity and legal nature.
For the purpose of the comparison between the arrangements concluded by the Government of Burkina Faso with its creditors not listed in the present Agreed Minute on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements will be taken into account, including the exposure of the creditors not listed in the present Agreed Minute, the level of cash payments received by those creditors from the Government of Burkina Faso as compared to their share in the Burkina Faso's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganised claims and in particular their repayment terms whatever forms they take, and in general the financial relations between the Government of Burkina Faso and the creditors not listed in the present Agreed Minute.
