Amounts treated
$29 871 million
Categories of debt treated
Treatment of the stock as of April 01, 1991
Repayment profile
Treatment under Ad Hoc terms
Specific provisions
Possibility to conduct debt swaps
On a voluntary basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt swaps, the amounts of outstanding credits, loans and consolidations [treated in the present Agreed Minute], up to 10 % of the Relevant Principal, or up to an amount of 20 million US dollars, whichever is higher.
Pullback clause
a) The Participating Creditor Countries reserve the right to 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, or if the Government of the Republic of Poland has not met its payments obligations to the Participating Creditor Countries during the first three years, the provisions [...] of the present Agreed Minute will become null and void.
Special account
To facilitate the implementation of this Agreed Minute, the Narodowy Bank Polski will deposit in a special account to be established with the Bank of International Settlements the equivalent of at least 1 800 Million Dollars of the United States of America in 12 quarterly instalments of at least 150 Million Dollars of the United States of America, the first one to be made on July 1, 1991. The Narodowy Bank Polski will arrange to have the Bank of International Settlements notify the Chairman of the Paris Club as soon as each deposit has been made. The total amount approximates the amount estimated to be payable to all Participating Creditor Countries during the next three years. As specific payments under this Agreed Minute become due, the Narodowy Bank Polski will draw on the special account to meet these payments ; no drawing will be made on the special account for any other repayment before all payments due through March 31, 1994 inclusive under this Agreed Minute have been made. Any drawing on this account will be made after a previous 15-day notice to the Bank of International Settlements, which this Bank will notify immediately to the Chairman of the Paris Club.
Payment of non-consolidated amounts before July 31, 1991
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 Poland commits itself to seek from all its external creditors debt reduction and reorganization arrangements on terms comparable to those set forth in this Agreed Minute for credits of comparable maturity.
This means that the Government of the Republic of Poland commits itself to accord all categories of creditors - and in particular creditor countries not participating in this Agreed Minute, commercial banks and suppliers - a treatment not more favourable than that accorded the Participating Creditor Countries.
The Government of the Republic of Poland will inform regularly in writing the Chairman of the Paris Club of the progress made for this purpose in the negotiations with all its external creditors. A first report should be provided to the Chairman of the Paris Club by June 1, 1991.
The Government of the Republic of Poland will inform without delay the Chairman of the Paris Club of the content of any agreement reached with its other external creditors.
(a) In particular, the Government of the Republic of Poland commits itself to seek from its creditor banks a debt reduction and reorganization agreement in terms comparable to the provisions set forth in the present Agreed Minute.
(b) For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Poland with its creditor banks on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements will be taken into account, including the real exposure of the banks, the level of cash payments received by the banks from the Government of the Republic of Poland as compared to their share in the Republic of Poland's external debt, the nature and characteristics of all options offered, including debt buy backs, and all characteristics of the reorganized claims. The latter will include the enhancements, if any, granted to the banks such as those supported by international financial institutions and value recovery provisions, if any.
The Government of the Republic of Poland will inform in writing the Chairman of the Paris Club, on a yearly basis, of the cash payments made by the Republic of Poland to its external creditors, and especially to the commercial banks.
The Government of the Republic of Poland will seek to secure from each of its creditor countries not participating in this Agreed Minute a debt reduction and reorganization agreement in terms comparable to those set forth in this Agreed Minute. The Government of the Republic of Poland agrees not to accord any such creditor country repayment terms more favourable than those accorded to the Participating Creditor Countries.
The Government of the Republic of Poland agrees that it will promptly negotiate debt reduction and reorganization agreements with all other creditors on debts of a comparable term.
Organisation of the session
Have attended: