Supporting agreements with the international institutions
Program with the IMF supported by an arrangement under the Poverty Reduction and Growth Facility (PRGF) approved on May 02, 2001
Download the IMF report : letter of intent
Total external debt of the country
$3 375 million as of December 31, 1999, representing 219% of GDP
$1 178 million of which being due to Paris Club as of November 30, 2000
Amounts treated
$151 million of which $70 million being canceled, of which $81 million being rescheduled
Accorded treatment
Given its track-record of reforms as well as the burden of its external indebtedness, Guinea reached in December 2000 its decision point under the enhanced HIPC Initiative.
Categories of debt treated
Treatment of arrears as of December 01, 2000
Treatment of maturities falling due from December 01, 2000 up to March 31, 2004
Repayment profile
Treatment under Cologne terms (cancellation rate of 90%)
- repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 90%
- repayment of ODA credits over 40 years with 16 years of grace
Rescheduling of ODA claims at a rate at least as favourable as the original contractual rate
Specific provisions
Possibility to conduct debt swaps
On a voluntary and bilateral 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) all ODA loans; (ii) the amounts of other outstanding credits, loans and consolidations, up to 20% of the amounts of outstanding credits as of December 31, 1992 or up to an amount of SDR 20 million, whichever is higher. Participating creditor countries and the Government of the Republic of Guinea will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Guinea's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat including: its nature and purpose; the parties to the debt swap ; the amount, type and value of the debt treated ; the price of sale to investors and the expense of the Republic of Guinea.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Republic of Guinea under the enhanced Debt Initiative for the Heavily Indebted Poor Countries, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the completion point designed to examine the question of the Republic of Guinea's outstanding debt stock and to make the necessary effort, in favour of the Republic of Guinea to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Republic of Guinea maintains satisfactory relations with participating Creditor Countries, fully implements all the agreements signed with them and maintains a sound adjustment track record;
- the Boards of the International Monetary Fund and the International Development Association decide that the Republic of Guinea has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
Phases
- First phase : From December 01, 2000 up to March 31, 2002, implemented at the signature of the agreement
- Second phase : From April 01, 2002 up to March 31, 2003, implemented on June 16, 2003
- Third phase : From April 01, 2003 up to March 31, 2004, not implemented
De minimis threshold of 250 000 SDR
Payment of non-consolidated amounts before August 31, 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 Guinea commits itself to seek from all its external creditors debt reduction and reorganisation arrangements on terms comparable in net present value to those set forth in the Agreed Minute dated 15 May 2001 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 Guinea commits itself to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minute dated 15 May 2001, commercial banks and suppliers- a treatment not more favorable than that accorded to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Guinea with its creditors not listed in the Agreed Minute dated 15 May 2001 on the one hand, and arrangements with the Participating Creditor Countries on the other hand, all relevant elements will be taken into account, including the exposure of the creditors not listed in the Agreed Minute dated 15 May 2001, the level of cash payments received by those creditors from the Government of the Republic of Guinea as compared to their share in the Guinea's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganised claims and in particular their repayment terms whatever forms they take, and in general the financial relations between the Government of the Republic of Guinea and the creditors not listed in the Agreed Minute dated 15 May 2001.
Cut-off date
January 01, 1986
Organisation of the session
The meeting was chaired by Mrs Stéphane Pallez, Co Chairperson of the Paris Club
The head of the debtor country's delegation was Mr. Cheick Ahmadou Camara, Minister of Economy and Finance
