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 mentioned in Article II-1 other than ODA loans, up to 20% of the amounts of outstanding credits as of January 1, 2005 after the implementation of the First Reduction or up to an amount of 20 million SDR, whichever is higher. Participating creditor countries and the Republic of Iraq 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 Iraq's 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 Iraq.
Cancellation phasing
First Reduction : cancellation of 30% of the debt stock as of the date of the signature of the agreement.
Second Reduction : cancellation of 30% of the initial debt stock as soon as an Arrangement with the IMF in the upper credit tranches is approved, implemented on 23 December 2005.
Third Reduction : cancellation of 20% of the initial debt stock as soon as the last review of an Agreement with the IMF in the upper credit tranches is approved, implemented on 22 December 2008.
Payment of non-consolidated amounts before June 01, 2005
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 Iraq commits 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 present 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 Iraq commits to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minutes, commercial banks and suppliers- a treatment not more favorable 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 Iraq with its creditors not listed in the present 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 present Agreed Minutes, the level of cash payments received by those creditors from the Government of the Republic of Iraq as compared to their share in the Republic of Iraq'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 Iraq and the creditors not listed in the present Agreed Minutes.
Cut-off date:
May 22, 2003
Organisation of the session:
The meeting was chaired by Mr. Jean-Pierre Jouyet, Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Adil A. Mahdi, Minister of Finance.
Treatment of maturities falling due from August 06, 1998 up to March 31, 2000
Repayment profile:
Treatment under Ad Hoc terms
Specific provisions:
Free transferability provision
The Government of the Republic of Indonesia will continue to allow unrestricted and immediate access to the foreign exchange required for servicing private sector debts owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions.
Phases
First phase : From August 06, 1998 up to March 31, 1999
Second phase : From April 01, 1999 up to March 30, 2000, implemented on December 24, 1999
Payment of non-consolidated amounts before December 31, 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 Indonesia commits itself to seek promptly from all its external creditors a rescheduling or a refinancing on terms comparable to those set forth in the present Memorandum of Understanding for credits of comparable maturity, while trying to avoid any discrimination among various categories of creditors.
The Government of the Republic of Indonesia commits itself not to accord any external creditor conditions of repayment more favourable than those accorded by the Participating Creditor Countries for credits of comparable maturity.
The Government of the Republic of Indonesia will inform in writing the Chairman of the Group of Official Creditor Countries of Indonesia not later than December 31, 1998 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. Afterwards, the Government of the Republic of Indonesia will further inform in writing regularly the Chairman of the Group of Official Creditor Countries of Indonesia of the status of its negotiations with other creditors, as well as of the payments made to them.
On a voluntary basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt swaps, the amounts of outstanding credits, loans and consolidations [treated in the present agreed minute]. On a voluntary basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt swaps, the amounts of outstanding credits, loans and consolidations [treated in the present agreed minute], up to 10 % of the total amount, or up to an amount of 20 million US dollars, whichever is higher.
Pullback clause
The Participating Creditor Countries reserve the right to review the implementation of the conditions stated in [the present agreed minute] for the comparability of treatment between all external creditors; if the Participating Creditor Countries determine that these conditions are not substantially fulfilled, or if the Government of the Arab Republic of Egypt has not met its payments obligations under this Agreed Minute to the Participating Creditor Countries during the first three years, the provisions of [the recommendations] of the present Agreed Minute will become null and void.
Special account
To facilitate the implementation of this Agreed Minute, the Central Bank of Egypt will deposit in the special account established with the Banque de France the equivalent of SDR 2400 Million in 12 quarterly installments of SDR 200 Million each, the first one to be made on October 15, 1991. The Central Bank of Egypt will arrange to have the Banque de France notify the Chairman of the Paris Club as soon as each deposit has been made. The total amount approximates the amount estimated to be payable to all Participating Creditor Countries during the next three years. As specific payments under this Agreed Minute become due, the Central Bank of Egypt will draw on the special account to meet these payments ; no drawing will be made on the special account for any other repayment before all payments due through June 30, 1994 inclusive under this Agreed Minute have been made. Any drawing on this account will be made after a previous 15-day notice to the Banque de France, which will notify immediately the Chairman of the Paris Club.
De minimis threshold of 10 000 000 SDR
Payment of non-consolidated amounts before October 31, 1991
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 Arab Republic of Egypt commits itself to seek from all its external creditors debt reduction and reorganization arrangements on terms comparable to those set forth in this Agreed Minute for credits of comparable maturity.
This means that the Government of the Arab Republic of Egypt commits itself to accord all categories of creditors - and in particular creditor countries not participating in this Agreed Minute, commercial banks and suppliers - a treatment not more favourable than that accorded the Participating Creditor Countries.
