Supporting agreements with the international institutions
Program with the IMF of the Emergency Post-Conflict Assistance (EPCA) approved on September 29, 2004
Total external debt of the country
$120 200 million as of December 31, 2004
$37 158 million of which being due to Paris Club as of January 01, 2004
Amounts treated
$37 158 million of which $29 727 million being canceled, of which $7 431 million being rescheduled
Categories of debt treated
Treatment of arrears as of December 31, 2004
Treatment of the stock as of January 01, 2005
Repayment profile
Treatment under Ad Hoc 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 Official Development Assistance loans; (ii) amounts of outstanding credits, loans and consolidations on debts mentioned in Article II-1 other than ODA loans, up to 20% of the amounts of outstanding credits as of January 1, 2005 after the implementation of the First Reduction or up to an amount of 20 million SDR, whichever is higher. Participating creditor countries and the Republic of Iraq will inform semi-annually the Secretariat of the Paris Club, who will inform other Creditors, of the debt swap agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Iraq's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat, including: its nature and purpose; the parties to the debt swap; the amount, type and value of the debt treated; the price of sale to investors and the expense of the Republic of Iraq.
Cancellation phasing
First Reduction : cancellation of 30% of the debt stock as of the date of the signature of the agreement.
Second Reduction : cancellation of 30% of the initial debt stock as soon as an Arrangement with the IMF in the upper credit tranches is approved, implemented on 23 December 2005.
Third Reduction : cancellation of 20% of the initial debt stock as soon as the last review of an Agreement with the IMF in the upper credit tranches is approved, implemented on 22 December 2008.
Payment of non-consolidated amounts before June 01, 2005
Comparability of treatment provision
In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of the Republic of Iraq commits to seek promptly from all its external creditors debt reduction and reorganization arrangements on terms comparable in net present value to those set forth in the present Agreed Minutes for credits of comparable maturity. Comparability of treatment for debt reduction in net present value is assessed not only on the basis of the reduction in the face value of the debt but also on the terms of repayment of the debts not cancelled. Consequently, the Government of the Republic of Iraq commits to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minutes, commercial banks and suppliers- a treatment not more favorable than that accorded to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Iraq with its creditors not listed in the present Agreed Minutes 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 creditors not listed in the present Agreed Minutes, the level of cash payments received by those creditors from the Government of the Republic of Iraq as compared to their share in the Republic of Iraq'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 Iraq and the creditors not listed in the present Agreed Minutes.
Cut-off date
May 22, 2003
Organisation of the session
The meeting was chaired by Mr. Jean-Pierre Jouyet, Chairman of the Paris Club.
The head of the debtor country's delegation was Mr. Adil A. Mahdi, Minister of Finance.
Files attached
PrIraq21nov046870.pdf (221.3 KB)