Supporting agreements with the international institutions
IMF programme supported by an Arrangement under the Extended Credit Facility approved on December 11, 2009
Total external debt of the country
$13 700 million as of December 31, 2009
$7 528 million of which being due to Paris Club as of July 01, 2010
Amounts treated
$7 528 million of which $6 049 million being canceled, of which $1 479 million being rescheduled
Accorded treatment
Reduction of the debt following the DRC having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 1 July 2010
Categories of debt treated
Treatment of arrears as of June 30, 2010
Treatment of the stock as of July 01, 2010
Repayment profile
Treatment under HIPC Initiative Exit terms
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 with the exception of loans;
(ii) the amounts of other outstanding credits, loans and consolidations with the exception of loans, up to 20% of the amounts of outstanding credits as of 30 June 2009 or up to an amount of 20 million dollars of the United States of America, whichever is higher.
Comparability of treatment provision
The Democratic Republic of the Congo was declared eligible to the enhanced HIPC Initiative by the IDA and the IMF in 2003 and was declared to have reached its Completion Point in July 2010. In this context, the Democratic Republic of the Congo commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 17 November 2010, 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 Democratic Republic of the Congo'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 Democratic Republic of the Congo and creditor countries not listed in the Agreed Minutes dated 17 November 2010.
Consequently, the Democratic Republic of the Congo commits not to accord any category of external creditors -and in particular creditor countries not participating in the Agreed Minutes dated 17 November 2010, commercial banks, suppliers and bondholders and litigating creditors- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date
June 30, 1983
Organisation of the session
The meeting was chaired by Ms. Delphine d'AMARZIT, Co Chairperson of the Paris Club.
The head of the debtor country's delegation was Mr. MATATA PONYO Mapon, Minister of Finance.
Files attached
PRDRC17112010ebb2.pdf (53.57 KB)