Supporting agreements with the international institutions
Program supported by an Arrangement under the Extended Credit Facility (ECF) approved on November 04, 2011
Total external debt of the country
$7 185 million of which being due to Paris Club as of July 01, 2011
Amounts treated
$2 321 million of which $397 million being canceled, of which $1 924 million being rescheduled
Accorded treatment
Debt relief of the external public debt on 15th November 2011, following the approval by the International Monetary Fund (IMF) of a new three year arrangement under the Extended Credit Facility on 4 November 2011
Categories of debt treated
Treatment of arrears as of June 30, 2011
Treatment of maturities falling due from July 01, 2011 up to June 30, 2014
Repayment profile
Treatment under Cologne terms
- repayment of non ODA credits over 23 years, with 6 years of grace
- repayment of ODA credits over 40 years with 16 years of grace
On an exceptional basis, considering the Republic of Côte d'Ivoire's limited capacity of payment, creditors have also agreed to defer and reschedule over a ten-year period the repayment of maturities due by the Republic of Côte d'Ivoire on short term and post-cut off date debts; and, over an eight-year period the arrears on those claims.
They also agreed to defer all the interest due on the amounts treated. Participating creditors welcomed that these measures are expected to reduce the debt service (including the arrears) due by the Republic of Côte d'Ivoire to Paris Club creditors between 1st July 2011 and 30 June 2014 by more than 78% which corresponds to 1 822 million USD, of which 397 million USD cancelled.
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 September 1991 or up to an amount of SDR 30 million, whichever is higher.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Government of the Republic of Côte d'Ivoire under the Enhanced HIPC Initiative, the Participating Creditor Countries declare their readiness in principle to hold a meeting following the Completion Point designed to examine the question of the Republic of Côte d'Ivoire's outstanding debt stock and to make the necessary effort in favour of the Republic of Côte d'Ivoire to allow it to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Government of the Republic of Côte d'Ivoire maintains satisfactory relations with the Participating Creditor Countries and a sound adjustment track record;
- the Executive Boards of the IMF and the IDA decide that the Republic of Côte d'Ivoire has reached its Completion Point under the enhanced HIPC initiative.
Phases
- First phase : From July 01, 2011 up to June 30, 2012, implemented at the signature of the agreement
- Second phase : From July 01, 2012 up to June 30, 2013, not implemented
- Third phase : From July 01, 2013 up to June 30, 2014, not implemented
Comparability of treatment provision
The Republic of Côte d'Ivoire was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2008 and was declared to have reached its Decision Point in March 2009. In this context, the Government of the Republic of Côte d'Ivoire commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 15 November 2011, 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 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 Republic of Côte d'Ivoire'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 Côte d'Ivoire and creditor countries not listed in the Agreed Minutes dated 15 November 2011.
Consequently, the Government of the Republic of Côte d'Ivoire commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 15 November 2011, commercial banks, suppliers, bondholders and litigating creditors- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date
July 01, 1983
Organisation of the session
The meeting was chaired by Mr. Rémy RIOUX, Vice Chairman.
The head of the debtor country's delegation was Mr. Charles Koffi DIBY, Minister of Economy and Finance.
Files attached
PRRCI201111155298.pdf (226.27 KB)