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
Comparability of treatment provision:
yes
Organisation of the session:
Written notification signed by Mr. Bertrand de MAZIERES, Vice President of the Paris Club, to Mrs. Mariam MAHAMA NOUR, MInister of Planning and Cooperation.
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.
