Supporting agreements with the international institutions
IMF program under the PRGF approved on April 04, 2000
Total external debt of the country
$6 185 million as of June 30, 2001
$1 750 million of which being due to Paris Club as of November 01, 2001
Amounts treated
$1 245 million of which $973 million being canceled, of which $272 million being rescheduled
Accorded treatment
Reduction of the stock of debt
Completion point reached on November 27, 2001
Categories of debt treated
Treatment of the stock as of January 01, 2002
Repayment profile
Treatment under HIPC Initiative Exit terms
Specific provisions
Possibility to conduct debt swaps
On a voluntary and bilateral basis, 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) all ODA loans ; (ii) amounts of outstanding credits, loans and consolidations on debts other than official development assistance loans, up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 40 million dollars of the United States of America, whichever is higher. Participating creditor countries and the United Republic of Tanzania will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swap agreements they have implemented. All elements necessary to evaluate the operation, its impact on Tanzania'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 United Republic of Tanzania.
Payment of non-consolidated amounts before July 01, 2002
Comparability of treatment provision
The United Republic of Tanzania was declared eligible to the Debt Initiative for the Heavily Indebted Poor Countries by the Boards of the International Monetary Fund and the International Development Association in April 2000 and was declared to have reached its completion point under the Debt Initiative for the Heavily Indebted Poor Countries by the Boards of the International Monetary Fund and the International Development Association on November 27, 2001.
In this context, the United Republic of Tanzania commits itself to seek promptly from all its external creditors which are not participating in the present Agreed Minute their appropriate contribution in terms of debt relief to the Enhanced Debt Initiative for the Heavily Indebted Poor Countries, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at decision point after the full use of traditional debt relief mechanisms.
The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors as compared to their share in Tanzania's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the United Republic of Tanzania and creditor countries not listed in the present Agreed Minute.
Cut-off date
June 30, 1986
Organisation of the session
The meeting was chaired by Mrs Stéphane PALLEZ, Co President of the Paris Club.
The head of the debtor country's delegation was Mr Basil MRAMBA, Minister for Finance.
Files attached
tanz2002cpen6870.pdf (25 KB)