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Debt treatment -
June 22, 2007

Supporting agreements with the international institutions

IMF programm under the Poverty Reduction and Growth Facility (PRGF) approved on February 21, 2007
Download the IMF report : PRGF document


Amounts treated

$3 million

Categories of debt treated

Treatment of arrears as of January 31, 2007

Treatment of maturities falling due from February 01, 2007 up to January 31, 2010

Repayment profile

Treatment under Cologne terms (cancellation rate of 90%)

  • repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 90%
  • repayment of ODA credits over 40 years with 16 years of grace

Specific provisions


  • First phase : From February 01, 2007 up to January 31, 2008, implemented at the signature of the agreement
  • Second phase : From February 01, 2008 up to January 30, 2009, not implemented
  • Third phase : From February 01, 2009 up to January 31, 2010, not implemented

Payment of non-consolidated amounts before October 01, 2007

Comparability of treatment provision

The Republic of Gambia was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 2000 and was declared to have reached its Decision Point in December 2000. In this context, the Republic of Gambia commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated June 22, 2007, 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 Gambia'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 Gambia and creditor countries not listed in these Agreed Minutes.

Consequently, the Republic of Gambia commits not to accord any category of creditors -and in particular creditor countries not participating in these Agreed Minutes, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.

Cut-off date

July 01, 1986

Organisation of the session

By written notification

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