AFGHANISTAN
Debt Treatment
-
July 19, 2006
|
Supporting aggreements with the international institutions
|
program with the IMF: Arrangement under the Poverty Reduction and Growth Facility (PRGF)
approved on
June 26, 2006
Download the IMF report :
PRGF document
|
|
Total external debt of the country
|
$2362 million
of which being due to the Paris Club as of
April 01, 2006
|
|
Amounts treated
|
$2388 million
,
of which
$1533 million
being canceled
,
of which
$855 million
being rescheduled
|
|
Categories of debts treated
|
treatment of arrears as of
March 31, 2006
,
treatment of maturities falling due from
April 01, 2006
up to
March 31, 2009
|
|
Repayment profile
|
treatment under
Naples 67% terms
(cancellation rate of
67% )
-
repayment of non ODA credits over
23
years
,
with
6
years of grace
, after cancellation to a rate of
67%
-
repayment of ODA credits over
40
years
with
16
years of grace
|
|
Specific provisions
|
good will clause
Participating Creditor Countries agree to grant a topping-up of the debt reduction of these Agreed Minutes to Cologne terms if the Government of the Islamic Republic of Afghanistan reaches its Decision Point under the Enhanced HIPC Initiative, provided that the Government of Afghanistan maintains satisfactory relations with the Participating Creditor Countries and the IMF. Participating Creditor Countries agree to grant additional debt relief if the Government of Afghanistan reaches Completion Point under the Enhanced HIPC initiative.
free transferability provision
The Government of Afghanistan guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency as of 19 July 2006 as well as all amounts paid from this date by the private debtors in Afghanistan for servicing their foreign debt owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been or will be deposited in the Central Bank.
Phases
-
First phase :
From
April 01, 2006
up to
March 31, 2007
implemented at the signature of the agreement
-
Second phase :
From
April 01, 2007
up to
March 31, 2008
implemented at
July 18, 2007
-
Third phase :
From
April 01, 2008
up to
March 31, 2009
implemented at
April 07, 2008
|
|
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 Afghanistan commits to seek from all its external creditors debt reduction and reorganisation arrangements on terms comparable in net present value to those set forth in these Agreed Minutes 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 Afghanistan commits to accord all categories of creditors -and in particular creditor countries not participating in these Agreed Minutes, 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 Afghanistan with its creditors not listed in these Agreed Minutes 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 present Agreed Minutes, the level of cash payments received by those creditors from the Government of Afghanistan as compared to their share in the Republic of Afghanistan'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 Afghanistan and the creditors not listed in these Agreed Minutes.
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Cutoff date
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June 20, 1999
|
|
Organisation of the session
|
The meeting was chaired by
M. Ambroise Fayolle,
Co-Chairman of the Paris Club
The head of the debtor country's delegation was
M. Anwar Ul-Haq Ahady,
Minister of Finance
Participating creditors
GERMANY
,
RUSSIAN FEDERATION
,
UNITED STATES OF AMERICA
Observers
CANADA
,
DENMARK
,
FRANCE
,
ITALY
,
JAPAN
,
NETHERLANDS
,
UNITED KINGDOM
,
IMF
,
OECD
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
|
|
