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 Agreed Minute dated October 24, 1997] as regards official development aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated in the Agreed Minute] , up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 20 million SDR, whichever is higher.

Entry-into-force provision

The provisions [...] of the Agreed Minute will come into force on March 31, 1998 provided that the Government of the Republic of Cameroon has made all payments due up to that date inclusive pursuant to the present Agreed Minute and especially those pursuant to [the Agreed Minute].

Agreement implemented on March 31, 1998

Good will clause

In response to the request of the representatives of the Government of the Republic of Cameroon, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Republic of Cameroon's debt service payments falling due after August 31, 2000 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before December 31, 1988 provided :

- that the Republic of Cameroon continues to have an appropriate arrangement with the International Monetary Fund ;

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

- and that the Republic of Cameroon has complied with all conditions set out in this Agreed Minute.

Special account

To facilitate the implementation of the Agreed Minute, the Government of the Republic of Cameroon will deposit in the special account established with the Banque de France, the equivalent of at least 13 billion CFA francs at the end of each month, commencing in December 1997 through August 2000 inclusive ; out of which for the period from December 1, 1997 up to March 31, 1998 12,5 billion CFA francs at the end of each month as payment of the amounts due pursuant to [...] the Agreed Minute dated November 16, 1995. The Government of the Republic of Cameroon undertakes to have this Bank notify the Chairman of the Paris Club as soon as each deposit has been made. The total amount approximates the amounts estimated to be payable to all Participating Creditor Countries from October 1, 1997 up to August 31, 2000 inclusive under the terms of the bilateral agreements to be concluded pursuant to the Agreed Minute. As specific payments under these agreements become due, the Government of the Republic of Cameroon will draw on the special account to meet these payments ; no drawing will be made on the special account for any other use before all payments due from October 1, 1997 up to August 31, 2000 inclusive under these agreements have been made. Any drawing on this account will be made after a previous 15-day notice to the above Bank, which this Bank will notify immediately to the Chairman of the Paris Club. This scheme could be continued by agreement between the parties.

Phases

• First phase : From October 01, 1997 up to August 31, 1998, implemented on March 31, 1998
• Second phase : From September 01, 1998 up to August 31, 1999, implemented on December 23, 1998
• Third phase : From September 01, 1999 up to December 31, 2000, implemented on October 20, 1999

De minimis threshold of 500 000 SDR

Payment of non-consolidated amounts before March 31, 1998