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Debt treatment -
September 25, 1998

Supporting agreements with the international institutions

Amounts treated

$23 million

Categories of debt treated

Treatment of arrears as of August 31, 1998

Treatment of maturities falling due from September 01, 1998 up to June 30, 2001

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

Entry-into-force provision

Agreement implemented on June 30, 1999

 

Good will clause

In response to the request of the representatives of the Government of the Central African Republic, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Central African Republic 's debt service payments falling due after June 30, 2001 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before January 1, 1983 provided:

- that the Central African Republic continues to have an appropriate arrangement with the International Monetary Fund;

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

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

If as at June 30, 2001, the Government of the Central African Republic has maintained satisfactory relations with the Participating or Observer Creditor Countries, and notably has fully implemented all agreements signed with them and continues to have an appropriate arrangement with the International Monetary Fund, the Participating Creditor Countries agree in principle to hold a meeting to consider the matter of the Central African Republic 's stock of debt.

 

Free transferability provision

The Government of the Central African Republic will take the relevant administrative measures or extend existing measures to ensure that the private debtors in the Central African Republic will be permitted to pay into the Central Bank the local currency counterpart of their obligations past due or falling due, corresponding to their debt of any nature owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions.

 

Phases

  • First phase : From September 01, 1998 up to June 30, 1999, implemented on June 30, 1999
  • Second phase : From July 01, 1999 up to June 29, 2000, implemented on February 12, 2001
  • Third phase : From July 01, 2000 up to June 30, 2001, implemented on February 12, 2001

De minimis threshold of 250 000 SDR

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 Central African Republic commits itself to negotiate debt reorganization arrangements with all its external creditors providing for comparable debt reduction in net present value as well as comparable terms of repayment of the debts not cancelled.

The Government of the Central African Republic commits itself not to accord any category of creditors - and in particular creditor countries not participating in the Agreed Minute, commercial banks and suppliers - a treatment more favourable than that accorded by the Participating Creditor Countries for credits of comparable maturity and legal nature.

The Government of the Central African Republic will inform in writing the Chairman of the Paris Club not later than December 31, 1998 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. The Government of the Central African Republic will further inform in writing regularly the Chairman of the Paris Club of the status of its negotiations with other creditors, as well as of the payments made to them, and in any case before the meeting mentioned in [the  Agreed Minute], the Chairman of the Paris Club of the status of its negotiations with other creditors and effective payments in their favour.

Cut-off date

January 01, 1983

Organisation of the session

The meeting was chaired by Mr. Philippe de FONTAINE VIVE, Vice President of the Paris Club.

The head of the debtor country's delegation was Mr. Anicet Georges DOLOGUELE, Minister of Finance and Budget.

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