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Debt treatment -
June 14, 2001

Total external debt of the country

$5 490 million as of December 31, 1999

$1 900 million of which being due to Paris Club as of December 31, 2000

Amounts treated

$420 million of which $26 million being canceled, of which $395 million being rescheduled

Accorded treatment

Restructuring of the public external debt

Categories of debt treated

Stock of non previously rescheduled commercial claims - stock of non previously rescheduled ODA claim

Repayment profile

Treatment under Naples terms (cancellation rate of 67%), after cancellation to a rate of 67%

  • repayment of ODA credits over 40 years with 16 years of grace

repayment profile

Specific provisions

Pullback clause

The Participating Creditor Countries reserve the right to review the implementation of the conditions stated in Article III paragraphs 1. and 3. hereabove 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 Yemen has not met its payments obligations as specified in the present Agreed Minute, the provisions of Article II. of the present Agreed Minute will become null and void ;

De minimis threshold of 1 000 000 SDR

Payment of non-consolidated amounts before September 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 Yemen 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 Yemen commits itself to accord all categories of creditors -and in particular creditors not participating in the present Agreed Minute, commercial banks and suppliers- a treatment not more favourable than that accorded by the Participating Creditor Countries.

For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Yemen with its creditors 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 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 Yemen as compared to their share in the Yemen'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 Yemen and the creditors not listed in the present Agreed Minute.

Cut-off date

January 01, 1993

Organisation of the session

The meeting was chaired by Mrs Stéphane Pallez, Co President of the Paris Club

The head of the debtor country's delegation was Mr. Alawi S. Al Salami, Vice Prime Minister, Minister of Finance


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