Supporting agreements with the international institutions
IMF program under the ESAF approved on January 14, 1999
Amounts treated
$3 254 million
Categories of debt treated
Treatment of arrears as of June 30, 1999
Treatment of maturities falling due from January 01, 1999 up to December 31, 2000
Repayment profile
Treatment under Houston terms
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) 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 December 31, 1998 or up to an amount of 30 million SDR, whichever is higher.
Free transferability provision
The Government of the Islamic Republic of Pakistan 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 Creditor Countries or their appropriate institutions.
Pullback clause
The participating Creditor Countries will review the implementation of the conditions stated [...] for the comparability of treatment between all external creditors ; if the Participating Creditor Countries determine that these conditions are not substantially fulfilled, they will declare the provisions set forth [in the present Agreed Minute] null and void.
Phases
- First phase : From January 01, 1999 up to February 29, 2000, implemented at the signature of the agreement
- Second phase : From March 01, 2000 up to February 28, 2001, not implemented
De minimis threshold of 1 000 000 SDR
Payment of non-consolidated amounts before June 30, 1999
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 Islamic Republic of Pakistan commits itself to seek from all its external creditors - and including inter alia creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- debt reorganization arrangements on terms comparable to those set forth in the present Agreed Minute while avoiding any discrimination among various categories of creditors.
The Government of the Islamic Republic of Pakistan commits itself to seek from bond holders the reorganization of bonds. This reorganization will be done on terms comparable to those set forth in the present Agreed Minute.
The Government of the Islamic Republic of Pakistan commits itself not to accord any category of creditors a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date
September 30, 1997
Organisation of the session
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