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Debt treatment -
November 15, 2000

Supporting agreements with the international institutions

Total external debt of the country

$5 500 million as of December 31, 1999, representing 135% of exports (in net present value)

$2 000 million of which being due to Paris Club as of December 31, 1999

Amounts treated

Categories of debt treated

Treatment of arrears as of July 01, 2000

Treatment of maturities falling due from July 01, 2000 up to June 30, 2001

Repayment profile

Treatment under Ad Hoc terms

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

repayment profile

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 ODA loans ; (ii) amounts of outstanding credits, loans and consolidations, other than Official Development Aid loans, on debts [treated in the present Agreed Minute], up to 20% of the amounts of outstanding claims as December 31, 1993 or up to an amount of 20 million SDR, whichever is higher. Participating Creditor Countries and the Republic of Kenya 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 Kenya'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 Kenya.


Free transferability provision

The Government of the Republic of Kenya will continue to guarantee with an appropriate exchange rate system the immediate and unrestricted transfer of foreign exchange counterpart of all amounts paid in local currency by the private debtors in Kenya for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions.

De minimis threshold of 500 000 SDR

Payment of non-consolidated amounts before June 30, 2001

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 Kenya commits itself to seek promptly from all its external creditors debt reorganisation arrangements on terms comparable to those set forth in the present Agreed Minute, while trying to avoid discriminations among different categories of creditors.

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

Cut-off date

December 31, 1991

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 Hon. Chrisanthus B. OKEMO, Minister of Finance.

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