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Debt treatment -
June 13, 2003

Supporting agreements with the international institutions

Program with the IMF under the Stand-by Arrangement approved on March 21, 2003

Download the IMF report : Document of the Stand-By Arrangement

Total external debt of the country

$11 400 million as of December 31, 2002

$2 730 million of which being due to Paris Club as of January 01, 2003

Amounts treated

Categories of debt treated

Treatment of maturities falling due from March 01, 2003 up to March 31, 2004

Repayment profile

Treatment under Houston terms

  • repayment of non ODA credits over 18 years, with 3 years of grace
  • repayment of ODA credits over 20 years with 10 years of grace

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 debt swaps: (i) all Official Development Assistance loans (ODA); (ii) amounts of outstanding credits, loans and consolidations on debts mentioned in Article II paragraph 1 other than ODA loans, up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 20 million SDR, whichever is higher.


Entry-into-force provision

The provisions of Article II-2 paragraphs A/ and B/ will come into force provided that the IMF has approved no later than July 31, 2003 the 1st review under the programme supported by the current Stand-by Arrangement.

Agreement implemented on August 07, 2003

The Participating Creditor Countries welcome the results of the debt sustainability analysis described in the IMF staff report for the 2003 Article IV consultation and acknowledge the Government of the Republic of Ecuador's efforts to reduce its public debt. In response to the request of the Government of the Republic of Ecuador, they agreed to continue to monitor closely the external debt situation of the country and to examine an updated debt sustainability analysis from the IMF staff in the context of the 2004 Article IV consultation.

De minimis threshold of 1 000 000 SDR

Payment of non-consolidated amounts before September 30, 2003

Comparability of treatment provision

In order to secure comparable treatment of its debt due to its other external public or private creditors, the Government of the Republic of Ecuador commits to seek promptly from its external creditors debt reorganization arrangements on terms comparable to those set forth in the present Agreed Minute, while trying to avoid discrimination among different categories of creditors.

The Government of the Republic of Ecuador commits to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, and private sector- a treatment not more favourable than that accorded to the Participating Creditor Countries for credits of comparable maturity.

For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Ecuador with its creditors not listed in the present Agreed Minute on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements will be taken into account, including the real exposure of the creditor not listed in the present Agreed Minute, the level of cash payments received by those creditors from the Government of the Republic of Ecuador as compared to their share in the Republic of Ecuador'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 Government of the Republic of Ecuador and the creditors not listed in the present Agreed Minute.

Cut-off date

January 01, 1983

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. Mauricio POZO, Minister of Economy and Finance.


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