Supporting agreements with the international institutions
Program with the IMF supported by an Arrangement under the Enhanced Poverty Reduction Growth Facility (PRGF) approved on December 21, 2000
Download the IMF report : Letter of Intent
Total external debt of the country
$7 800 million as of June 30, 1999
$5 400 million of which being due to Paris Club as of June 30, 1999
Amounts treated
$1 300 million of which $900 million being canceled, of which $400 million being rescheduled
Accorded treatment
Restructuring of the public external debt. Given its strong track-record of reforms as well as the burden of its external indebtedness, Cameroon reached in October 2000 its decision point under the enhanced HIPC Initiative. This Paris Club agreement also follows the International Monetary Fund's approval of a Poverty Reduction and Growth Facility on December 21, 2000.
Categories of debt treated
Treatment of arrears as of December 31, 2000.
Treatment of maturities falling due from January 01, 2001 up to March 31, 2006
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
Rescheduling of ODA credits at a rate at least as favorable as the original contractual rate
Specific provisions
Possibility to conduct debt swaps
On a voluntary and bilateral basis, the Government of each 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 ; (ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of SDR 20 million, whichever is higher. Participating creditor countries and the Government of the Republic of Cameroon will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Cameroon's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat including : its nature and purpose ; the parties to the debt swap ; the amount, type and value of the debt treated ; the price of sale to investors and the expense of the Republic of Cameroon.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Republic of Cameroon under the Enhanced Debt Initiative for the Heavily Indebted Poor Countries, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the completion point designed to examine the question of the Republic of Cameroon's outstanding debt stock and to make the necessary effort, in favour of the Republic of Cameroon to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :
- the Republic of Cameroon 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 Cameroon has reached its completion point under the Enhanced Debt Initiative for the Heavily Indebted Poor Countries.
Pullback clause
The Participating Creditor Countries will review the implementation of the conditions stated in paragraph 3. hereabove. If, in light of the decisions taken by the Board of the International Monetary Fund, the Participating Creditor Countries determine that these conditions were not fulfilled for the implementation of the present Agreed Minute they may declare part or all of the provisions set forth in Article II-2 above in the Agreement null and void.
Phases
- First phase : From January 01, 2001 up to December 31, 2001, implemented at the signature of the agreement
- Second phase : From January 01, 2002 up to December 31, 2002, implemented on February 26, 2002
- Third phase : From January 01, 2003 up to March 31, 2006, implemented on December 26, 2003
De minimis threshold of 500 000 SDR
Payment of non-consolidated amounts before April 30, 2001
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 Cameroon 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 dated January 24, 2001 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 Cameroon 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 the purpose of the comparison between the arrangements concluded by the Government of the Republic of Cameroon with its creditors not listed in the Agreed Minute 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 Minute, the level of cash payments received by those creditors from the Government of the Republic of Cameroon as compared to their share in the Cameroon'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 Cameroon and the creditors not listed in the Agreed Minute.
Cut-off date
December 31, 1988
Organisation of the session
The meeting was chaired by Mrs Stéphane PALLEZ, Co Chairperson of the Paris Club.
The head of the debtor country's delegation was Mr. Edouard AKAME MFOUMOU, State minister in charge of Economy and Finance.
Files attached
CM24012001CPEN6870.pdf (13.52 KB)