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Debt treatment -
April 24, 1998

Supporting agreements with the international institutions

IMF programme supported by an Arrangement under the Enhanced Structural Adjustment Facility (ESAF) approved on November 10, 1997
Download the IMF report : ESAF Document

Download the IMF report : Completion Point Document for the Heavily Indebted Poor Countries (HIPC) Initiative

Amounts treated

$147 million

Accorded treatment

Completion point reached on April 08, 1998

Categories of debt treated

Treatment of arrears as of March 31, 1998

Treatment of the stock as of April 01, 1998

Repayment profile

Treatment under Lyon terms (cancellation rate of 80%)

  • repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 80%
  • repayment of ODA credits over 40 years with 16 years of grace

Specific provisions

Possibility to conduct debt swaps

On a voluntary basis, the Government of each 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) the amounts of outstanding loans [treated in the present Agreed Minute] as regards official development aid loans and direct Government loans ; (ii) the amounts of other outstanding credits (treated in the present Agreed Minute], up to 20% of the amounts of outstanding credits as of June 30, 1992 or up to an amount of 15 million SDR, whichever is higher.


Pullback clause

The Participating Creditor Countries reserve the right to review the implementation of the conditions stated [...] for the comparability of treatment between all external creditors ; if the Participating Creditor Countries determine that these conditions are not substantially fulfilled, or that the Government of the Republic of Uganda has not met its payments obligations as specified in the present Agreed Minute, the provisions [...] of the present Agreed Minute will become null and void.

De minimis threshold of 1 100 000 SDR

Payment of non-consolidated amounts before September 30, 1998

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 Uganda 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 present Agreed Minute 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 Uganda commits itself to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- a treatment not more favourable than that accorded the Participating Creditor Countries.

For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Uganda with its creditor countries 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 countries not listed in the present Agreed Minute, the level of cash payments received by those creditor countries from the Government of the Republic of Uganda as compared to their share in the Republic of Uganda'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 Uganda and the creditor countries not listed in the present Agreed Minute.

The Government of the Republic of Uganda will inform in writing the Chairman of the Paris Club no later than October 31, 1998 of the progress made for this purpose in negotiations with other creditors. It will inform afterwards on a semestrial basis, the Chairman of the Paris Club of the status of its relationships with other creditors.

Organisation of the session

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