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Debt treatment -
October 28, 1998

Supporting agreements with the international institutions

IMF program under the stand by approved on May 29, 1998

 

Amounts treated

$588 million

Categories of debt treated

Treatment of arrears as of June 30, 1998

Treatment of maturities falling due from July 01, 1998 up to April 30, 1999

Repayment profile

Treatment under Naples terms (cancellation rate of 67%)

  • repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 67%
  • repayment of ODA credits over 40 years with 16 years of grace

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) the amounts of outstanding loans [treated in the present Agreed Minute] as regards official development aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated in the present Agreed Minute], up to 20% of the amounts of outstanding credits as of June 30, 1998 or up to an amount of 20 million SDR, whichever is higher.

 

Good will clause

In response to the request of the representatives of the Government of Bosnia and Herzegovina, the Participating Creditor Countries agreed in principle to hold a meeting to consider the matter of the Government of Bosnia and Herzegovina's debt service payments falling due after April 30, 1999 and relating to loans or credits mentioned in [the present Agreed Minute] provided :

- that Bosnia and Herzegovina continues to have an appropriate arrangement with the International Monetary Fund ;

- that Bosnia and Herzegovina has reached with other creditors effective arrangements meeting the conditions described in [the present Agreed Minute] and has reported in writing to the Chairman of the Paris Club, pursuant to [the present Agreed Minute] ;

- and that Bosnia and Herzegovina has complied with all conditions set out in the present Agreed Minute.

 

Free transferability provision

The Government of Bosnia and Herzegovina will continue to allow unrestricted and immediate access to the foreign exchange required for servicing private sector debts owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions.

De minimis threshold of 550 000 SDR

Payment of non-consolidated amounts before April 30, 1999

Comparability of treatment provision

In order to secure comparable treatment of public and private external creditors on their debts, the Government of Bosnia and Herzegovina commits itself to seek from its external creditors, in particular banks and suppliers, rescheduling or refinancing arrangements on terms comparable to those set forth in this Agreed Minute for credits of comparable maturity, making sure to avoid inequality between different categories of creditors.

The Government of Bosnia and Herzegovina will seek to secure, from each of its Creditor Countries not participating in this Agreed Minute, rescheduling or refinancing arrangements on terms comparable to those set forth in this Agreed Minute. The Government of Bosnia and Herzegovina agrees not to accord any such Creditor Country repayment terms more favourable to such Creditor Countries than those accorded to the Participating Creditor Countries.

The Government of Bosnia and Herzegovina agrees that it will promptly negotiate rescheduling or refinancing arrangements with all other creditors on debts of a comparable term.
 

Cut-off date

December 02, 1982

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