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Debt treatment -
October 24, 2000

Supporting agreements with the international institutions

Program with the IMF supported by an Arrangement under the Poverty Reduction and Growth Facility (PRGF) approved on July 17, 2000
Download the IMF report : letter of intent

Download the IMF report : Decision Point Document for the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative

Total external debt of the country

$178 million of which being due to Paris Club as of July 18, 2000

Amounts treated

$5 million of which $5 million being canceled

Accorded treatment

Decision point reached on July 17, 2000

Categories of debt treated

Treatment of maturities falling due from July 18, 2000 up to February 28, 2003

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 favour of the Republic of Benin under the enhanced Debt Initiative for the Heavily Indebted Poor Countries, the Participating Creditor Countries declare their readiness in principle to hold at completion point a meeting designed to examine the question of the Republic of Benin's outstanding debt stock and to make the necessary effort, in favour of the Republic of Benin to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :

- the Republic of Benin 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 the Republic of Benin 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 the Republic of Benin 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 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 the Republic of Benin commits itself to accord all categories of creditors -and in particular creditor countries not participating in the 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 the Republic of Benin with its creditors not listed in the 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 Agreed Minute, the level of cash payments received by those creditors from the Government of the Republic of Benin as compared to their share in the Benin'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 Republic of Benin and the creditors not listed in the Agreed Minute.

Cut-off date

March 31, 1989

Organisation of the session

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