Restructuring of the external public debt. This agreement follows the approval by the International Monetary Fund (IMF) of an arrangement under the Poverty Reduction and Growth Facility on 22 December 2006 and the examination by the IMF and the World Bank (International Development Association) of the preliminary document under the Enhanced Heavily Indebted Poor Countries Initiative in March 2007.
Categories of debt treated:
Treatment of arrears as of November 30, 2006.
Treatment of maturities falling due from December 01, 2006 up to November 30, 2009
Repayment profile:
Treatment under Naples terms (cancellation rate of 67%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 67%
repayment of ODA credits over 40 years with 16 years of grace
The credits granted under Official Development Assistance conditions are to be repaid at interest rates at least as favourable as the orignal concessional rates applied to those loans.
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) the amounts of outstanding loans and consolidations as regards ODA debts;
(ii) the amounts of other outstanding credits, loans and consolidations referred to in the agreement, up to 20% of the amounts of outstanding loans, credits and consolidations as of 31 March 1994 or up to an amount of 15 million SDR, whichever is higher.
Good will clause
Participating Creditor Countries agree to grant a topping-up of the debt reduction of the Agreed Minutes to Cologne terms once the Government of the Central African Republic reaches its Decision Point under the Enhanced Debt Initiative for the Heavily Indebted Poor Countries, provided that the Government of the Central African Republic maintains satisfactory relations with the Participating Creditor Countries and the IMF.
Phases
First phase : From December 01, 2006 up to November 30, 2007, implemented at the signature of the agreement
Second phase : From December 01, 2007 up to November 29, 2008, implemented on June 27, 2008
Third phase : From December 01, 2008 up to November 30, 2009, implemented on July 17, 2009
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 Central African Republic commits 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 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 Central African Republic commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minutes, commercial banks and suppliers - 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 Central African Republic with its creditors not listed in the Agreed Minutes on the one hand, and arrangements 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 Agreed Minutes, the level of cash payments received by those creditors from the Government of the Central African Republic 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 reorganised claims and in particular their repayment terms whatever forms they take, and in general the financial relations between the Government of the Central African Republic and the creditors not listed in the Agreed Minutes.
Cut-off date:
January 01, 1983
Organisation of the session:
The meeting was chaired by Mr. Ramon Fernandez, Vice-Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Nicolas Nganze Doukou, Deputy Minister for Finance and Budget.
Supporting agreements with the international institutions:
IMF program under the stand by approved on May 29, 1998
Amounts treated:
$588 million
Categories of debt treated:
Treatment of arrears as of June 30, 1998
Treatment of maturities falling due from July 01, 1998 up to April 30, 1999
Repayment profile:
Treatment under Naples terms (cancellation rate of 67%)
repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 67%
repayment of ODA credits over 40 years with 16 years of grace
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) the amounts of outstanding loans [treated in the present Agreed Minute] 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 June 30, 1998 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 Bosnia and Herzegovina, the Participating Creditor Countries agreed in principle to hold a meeting to consider the matter of the Government of Bosnia and Herzegovina's debt service payments falling due after April 30, 1999 and relating to loans or credits mentioned in [the present Agreed Minute] provided :
- that Bosnia and Herzegovina continues to have an appropriate arrangement with the International Monetary Fund ;
- that Bosnia and Herzegovina has reached with other creditors effective arrangements meeting the conditions described in [the present Agreed Minute] and has reported in writing to the Chairman of the Paris Club, pursuant to [the present Agreed Minute] ;
- and that Bosnia and Herzegovina has complied with all conditions set out in the present Agreed Minute.
Free transferability provision
The Government of Bosnia and Herzegovina 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 or Observer Creditor Countries or their appropriate institutions.
De minimis threshold of 550 000 SDR
Payment of non-consolidated amounts before April 30, 1999
Comparability of treatment provision:
In order to secure comparable treatment of public and private external creditors on their debts, the Government of Bosnia and Herzegovina commits itself to seek from its external creditors, in particular banks and suppliers, rescheduling or refinancing arrangements on terms comparable to those set forth in this Agreed Minute for credits of comparable maturity, making sure to avoid inequality between different categories of creditors.
The Government of Bosnia and Herzegovina will seek to secure, from each of its Creditor Countries not participating in this Agreed Minute, rescheduling or refinancing arrangements on terms comparable to those set forth in this Agreed Minute. The Government of Bosnia and Herzegovina agrees not to accord any such Creditor Country repayment terms more favourable to such Creditor Countries than those accorded to the Participating Creditor Countries.
The Government of Bosnia and Herzegovina agrees that it will promptly negotiate rescheduling or refinancing arrangements with all other creditors on debts of a comparable term.
