Naples 50 %

Possibility to conduct debt swaps

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 Minute dated 26 February 1997] as regards official development aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated in the present Agreed Minute], up to 20% of the amounts of outstanding credits as of December 31, 1992 or up to an amount of 20 million SDR, whichever is higher.

Good will clause

In response to the request of the representatives of the Government of the Republic of Guinea, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Republic of Guinea's debt service payments falling due after December 31, 1999 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before January 1, 1986 provided:

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

- that the Republic of Guinea has reached with other creditors effective arrangements meeting the conditions described in [the Agreed Minute dated 26 February 1997] and has reported in writing to the Chairman of the Paris Club, pursuant to [the Agreed Minute dated 26 February 1997];

- and that the Republic of Guinea has complied with all conditions set out in the Agreed Minute dated 26 February 1997.

Free transferability provision

The Government of the Republic of Guinea will continue to guarantee within an appropriate exchange rate system the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in the Republic of Guinea for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions.

Pullback clause

The Participating Creditor Countries reserve the right to review and agree to the implementation of the conditions stated [...] for the comparability of treatment between all creditor countries. If the Participating Creditor Countries determine that these conditions are not substantially fulfilled, and do not agree to their implementation, the provisions [...] of the Agreed Minute dated 26 February 1997 will become null and void. In this case, the total amount of debts covered by the Agreed Minute dated 26 February 1997 will be due and payable at that time, with the exception of maturities which have not yet fallen due on these debts. Any payments of principal and interest already made under [the Agreed Minute dated 26 February 1997] will be taken into account.

Special account

To facilitate the implementation of thE Agreed Minute dated 26 February 1997, the Government of the Republic of Guinea will deposit in the special account established with the Banque de France, the equivalent of at least SDR 700,000 at the end of each month, commencing on March 31, 1997 through December 31, 1999 inclusive. The Government of the Republic of Guinea undertakes to have this Bank notify the Chairman of the Paris Club as soon as each deposit has been made. The total amount approximates the amounts estimated to be payable to all Participating or Observer Creditor Countries from January 1, 1997 up to December 31, 1999 inclusive under the terms of the bilateral agreements to be concluded pursuant to the Agreed Minute dated 26 February 1997 or under the terms of [...] the Agreed Minute dated 26 February 1997. As specific payments under these agreements or under Article III paragraph 3. become due, the Government of the Republic of Guinea will draw on the special account to meet these payments ; no drawing will be made on the special account for any other use before all payments due from January 1, 1997 up to December 31, 1999 inclusive under these agreements have been made. Any drawing on this account will be made after a previous 15-day notice to the above Bank, which this Bank will notify immediately to the Chairman of the Paris Club. This scheme could be continued by agreement between the parties.

Phases

• First phase : From January 01, 1997 up to December 31, 1997, implemented at the signature of the agreement
• Second phase : From January 01, 1998 up to December 31, 1998, implemented on July 22, 1999
• Third phase : From January 01, 1999 up to December 31, 1999, implemented on February 15, 2000

De minimis threshold of 500 000 SDR

Payment of non-consolidated amounts before May 31, 1997

De minimis threshold of 150 000 SDR

Payment of non-consolidated amounts before October 01, 1998