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Debt treatment -
February 28, 2013

Supporting agreements with the international institutions

Total external debt of the country

$275 million as of December 31, 2011

$13 million of which being due to Paris Club as of December 31, 2012

Amounts treated

$13 million of which $8 million being canceled, of which $5 million being rescheduled

Accorded treatment

Debt cancellation following the Union of the Comoros having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 20 December 2012

Categories of debt treated

Treatment of arrears as of November 30, 2012. Treatment of the stock as of December 01, 2012


Repayment profile

Treatment under HIPC Initiative Exit terms

As a contribution to restoring the Union of the Comoros’ debt sustainability, Paris Club creditors will provide a cancellation of USD 8.06 million, fulfilling all their commitments under the enhanced HIPC initiative. In total, the effort provided by Paris Club creditors represents a reduction in net present value of 85.5% of the debt stock of the Union of the Comoros at the beginning of the enhanced HIPC process.


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 as regards ODA loans;

(ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of 30 June 2009 or up to an amount of 30 million SDR, whichever is higher.

Comparability of treatment provision

The Union of the Comoros was declared eligible to the enhanced HIPC Initiative by the IDA and the IMF in September 2009 and was declared to have reached its Completion Point in December 2012. In this context, the Union of the Comoros commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 28 February 2013, 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 of the Union of the Comoros 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 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 will be taken into account, including the level of cash payments received by those creditors as compared to their share in the Union of the Comoros'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 Union of the Comoros and all their other creditors.

Consequently, the Union of the Comoros commits not to accord any category of external creditors -and in particular litigating creditors, creditor countries not participating in the Agreed Minutes dated 28 February 2013, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.


Cut-off date

June 20, 1999

Organisation of the session

The meeting was chaired by Mr. Arnaud Buissé, Vice Chairman of the Paris Club.

The head of the debtor country's delegation was Mr. Mohamed Ali Soilihi, Vice-President in charge of the Ministry for Finance, Economy, Budget, Investment and Foreign Trade, and Privatisations.


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