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Debt treatment -
June 17, 2006

Supporting agreements with the international institutions

Total external debt of the country

$6 200 million as of December 31, 2005

$4 198 million of which being due to Paris Club as of April 01, 2006

Amounts treated

$1 829 million of which $1 090 million being canceled, of which $739 million being rescheduled

Accorded treatment

Completion point reached on April 28, 2006

Reduction of the stock of debt

Categories of debt treated

Treatment of arrears as of March 31, 2006. Treatment of the stock as of April 01, 2006

Repayment profile

Treatment under HIPC Initiative Exit terms

Specific provisions

Payment of non-consolidated amounts before December 31, 2006

Comparability of treatment provision

The Republic of Cameroon was declared eligible to the Enhanced HIPC Initiative by the IDA and the IMF in October 2000 and was declared to have reached its Completion Point on 28 April 2006. In this context, the Republic of Cameroon commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated June 17, 2006, their appropriate contribution in terms of debt relief to the Enhanced HIPC Initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.

The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value terms of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements shall be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Cameroon's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Republic of Cameroon and creditor countries not listed in the Agreed Minutes.

Consequently, the Republic of Cameroon commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.

Cut-off date

December 31, 1988

Organisation of the session

The meeting was chaired by Mr. Ramon Fernandez, Vice President of the Paris Club.

The head of the debtor country's delegation was Mr. Polycarpe Abah Abah, Minister of Economy and Finance.

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