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Debt treatment -
March 04, 2004

Supporting agreements with the international institutions

program with the IMF : Poverty reduction and growth facility (PRGF) approved on January 23, 2004
Download the IMF report : PRGF document


Total external debt of the country

$1 217 million as of January 01, 2004, representing 203,9% of GDP

$130 million of which being due to Paris Club as of January 01, 2004

Amounts treated

$85 million of which $4 million being canceled, of which $81 million being rescheduled

Accorded treatment

Restructuring of Burundi's public external debt, following the approval of an arrangement under the Poverty Reduction and Growth Facility by the International Monetary Fund on January 23, 2004

Categories of debt treated

Treatment of maturities falling due from January 01, 2004 up to June 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

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) all ODA loans and credits ; (II) other amouts of outstanding credits and loans, up to 10% of the amounts of outstanding credits as of March 4, 2004 or up to an amount of 10 million SDR, whichever is higher.


Good will clause

Participating Creditor Countries agree to grant a topping-up of the debt reduction of the Agreed Minute dated 4 March 2004 to Cologne terms once the Government of the Republic of Burundi reaches its Decision Point under the Enhanced Debt Initiative for the Heavily Indebted Poor Countries, provided that the Government of the Republic of Burundi maintains satisfactory relations with the Participating Creditor Countries and the IMF.


Free transferability provision

The Government of the Republic of Burundi guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency as at March 4, 2004 by the private debtors in the Republic of Burundi for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been or will be deposited in the Central Bank of the Republic of Burundi.



  • First phase : From January 01, 2004 up to December 31, 2004, implemented at the signature of the agreement
  • Second phase : From January 01, 2005 up to December 31, 2005, implemented on September 15, 2005
  • Third phase : From January 01, 2006 up to June 30, 2009, implemented on December 04, 2006

De minimis threshold of 100 000 SDR

Payment of non-consolidated amounts before September 01, 2004

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 Burundi 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 Minute dated 4 March 2004 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.

Cut-off date

June 20, 1999

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. Athanase Gahungu, Minister of Finance

Participating creditors

Files attached

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