Supporting agreements with the international institutions
IMF programme supported by an Arrangement under the Poverty Reduction and Growth Facility (PRGF) approved on April 21, 2008
Download the IMF report : Decision Point Document for the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative
Amounts treated
$22 million of which $22 million being canceled
Accorded treatment
Restructuring of its external public debt following Togo’s reaching the Decision Point under the enhanced Heavily Indebted Poor Countries initiative in end-November 2008
Categories of debt treated
Treatment of maturities falling due from November 01, 2008 up to March 31, 2011
Repayment profile
Treatment under Cologne terms (cancellation rate of 90%)
Specific provisions
Possibility to conduct debt swaps
On a voluntary and bilateral basis, the Government of 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 the amounts of outstanding credits, loans and consolidations, up to 10% of the amounts of outstanding loans, credits and consolidations as of 30 June 1992 or up to an amount of 20 million of dollars of the United States of America, whichever is higher.
Good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Government of the Togolese Republic under the Enhanced HIPC Initiative, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the Completion Point designed to examine the question of the Togolese Republic's outstanding debt stock and to make the necessary effort in favour of the Togolese Republic to allow it to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Government of the Togolese Republic maintains satisfactory relations with the Participating Creditor Countries and a sound adjustment track record;
- the Executive Boards of the IMF and the IDA decide that the Togolese Republic has reached its Completion Point under the enhanced HIPC initiative.
Phases
- First phase : From November 01, 2008 up to March 31, 2009, implemented at the signature of the agreement
- Second phase : From April 01, 2009 up to March 31, 2010, implemented on July 17, 2009
- Third phase : From April 01, 2010 up to March 31, 2011, implemented on July 23, 2010
Comparability of treatment provision
The Togolese Republic was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in September 2008 and was declared to have reached its Decision Point in November 2008. In this context, the Togolese Republic commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 22 January 2009, their appropriate contribution in terms of debt relief to the enhanced HIPC initiative, 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 the Togolese Republic'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 Togolese Republic and creditor countries not listed in the Agreed Minutes dated 22 January 2009.
Consequently, the Togolese Republic commits not to accord any category of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 22 January 2009, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cut-off date
January 01, 1983
Organisation of the session
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Files attached
PRTogo20090128f1f4.pdf (70.77 KB)