Supporting agreements with the international institutions
IMF program approved on April 28, 2000
Amounts treated
$27 million
Categories of debt treated
Treatment of arrears as of March 31, 2000
Treatment of maturities falling due from April 01, 2000 up to April 30, 2003
Repayment profile
Treatment under Naples terms (cancellation rate of 67%)
Specific provisions
Good will clause
In response to the request of the representatives of the Government of the Democratic Republic of Sao Tome and Principe, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Democratic Republic of Sao Tome and Principe's debt service payments falling due after April 30, 2003 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before April 1st, 1999, provided:
- that the Democratic Republic of Sao Tome and Principe continues to have an appropriate arrangement with the International Monetary Fund;
- that the Democratic Republic of Sao Tome and Principe has reached with other creditors effective arrangements meeting the conditions described in [the Agreed Minute dated May 16, 2005] and has reported in writing to the Chairman of the Paris Club, pursuant to [the Agreed Minute ] ;
- and that the Democratic Republic of Sao Tome and Principe has complied with all conditions set out in this Agreed Minute.
Phases
- First phase : From April 01, 2000 up to April 30, 2001, implemented at the signature of the agreement
- Second phase : From May 01, 2001 up to April 30, 2002, not implemented
- Third phase : From May 01, 2002 up to April 30, 2003, not implemented
De minimis threshold of 150 000 SDR
Payment of non-consolidated amounts before October 31, 2000
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 Democratic Republic of Sao Tome and Principe commits itself 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 Agreed Minute dated May 16, 2000 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 Democratic Republic of Sao Tome and Principe commits itself to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minute, commercial banks and suppliers- a treatment not more favourable than that accorded to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Democratic Republic of Sao Tome and Principe with its creditor 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 creditors not listed in the Agreed Minute, the level of cash payments received by those creditors from the Government of the Democratic Republic of Sao Tome and Principe as compared to their share in the Democratic Republic of Sao Tome and Principe'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 Democratic Republic of Sao Tome and Principe and the creditors not listed in the Agreed Minute.
The Government of the Democratic Republic of Sao Tome and Principe will inform in writing the Chairman of the Paris Club no later than December 31, 2000 of the progress made for this purpose in negotiations with other creditors [of the Agreed Minute], and will communicate to the Chairman of the Paris Club the content of its bilateral agreements with these creditors.
Cut-off date
April 01, 1999
Organisation of the session
Have attended:
- BELGIUM, JAPAN, UNITED STATES OF AMERICA