Supporting agreements with the international institutions
IMF programme supported by an Arrangement under the Extended Credit Facility (ECF) approved on December 11, 2009
Total external debt of the country
$6 920 million of which being due to Paris Club as of July 01, 2009
Amounts treated
$2 957 million of which $1 310 million being canceled, of which $1 647 million being rescheduled
Accorded treatment
Restructuring of the external public debt, following the approval by the International Monetary Fund (IMF) of a new three-year arrangement under the Extended Credit Facility on 11 December 2009
Categories of debt treated
Treatment of arrears as of June 30, 2009
Treatment of maturities falling due from July 01, 2009 up to June 30, 2012
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 Democratic Republic of Congo's limited capacity of payment, creditors have also agreed to defer until after 1st July 2012 the repayment of maturities due by the Democratic Republic of Congo on short term and post-cut off date debts, as well as a significant part of the arrears on those claims. They also agreed to defer all the interest due on the amounts treated.
These measures are expected to reduce by 97% the debt service (including the arrears) due by the Democratic Republic of Congo to Paris Club creditors between 1st July 2009 and 30 June 2012.
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 and consolidations as regards ODA debts;
(ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding loans, credits and consolidations as of 30 June 2009 or up to an amount of 20 million SDR, 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 Democratic Republic of Congo 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 Democratic Republic of Congo's outstanding debt stock and to make the necessary effort in favour of the Democratic Republic of Congo 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 Democratic Republic of Congo 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 Democratic Republic of Congo has reached its Completion Point under the enhanced HIPC initiative.
Phases
- First phase : From July 01, 2009 up to June 30, 2010, implemented at the signature of the agreement
- Second phase : From July 01, 2010 up to June 30, 2011, not implemented
- Third phase : From July 01, 2011 up to June 30, 2012, not implemented
Comparability of treatment provision
The Democratic Republic of Congo was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2002 and was declared to have reached its Decision Point in July 2003. In this context, the Government of the Democratic Republic of Congo commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 25 April 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 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 Congo and creditor countries not listed in the Agreed Minutes dated 25 April 2010.
Consequently, the Government of the Democratic Republic of Congo commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 25 April 2010, commercial banks, suppliers, 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. César LUBAMBA NGIMBI, Minister of Urban Development and Housing.
