BENIN
Debt Treatment
-
October 24, 2000
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Supporting aggreements with the international institutions
|
Program with the IMF supported by an Arrangement under the Poverty Reduction and Growth Facility (PRGF)
approved on
July 17, 2000
Download the IMF report :
letter of intent
Download the IMF report :
Decision Point Document for the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative
|
|
HIPC Initiative
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Decision point
reached on
July 17, 2000
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Total external debt of the country
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$178 million
of which being due to the Paris Club as of
July 18, 2000
|
|
Amounts treated
|
$5 million
,
of which
$5 million
being canceled
|
|
Categories of debts treated
|
treatment of maturities falling due from
July 18, 2000
up to
February 28, 2003
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Repayment profile
|
treatment under
Cologne terms
(cancellation rate of
90% )
-
repayment of non ODA credits over
23
years
,
with
6
years of grace
, after cancellation to a rate of
90%
-
repayment of ODA credits over
40
years
with
16
years of grace
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|
Specific provisions
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good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Republic of Benin under the enhanced Debt Initiative for the Heavily Indebted Poor Countries, the Participating Creditor Countries declare their readiness in principle to hold at completion point a meeting designed to examine the question of the Republic of Benin's outstanding debt stock and to make the necessary effort, in favour of the Republic of Benin to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :
- the Republic of Benin maintains satisfactory relations with participating Creditor Countries, fully implements all the agreements signed with them and maintains a sound adjustment track record ;
- the Boards of the International Monetary Fund and the International Development Association decide that the Republic of Benin has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
de minimis threshold of
100 000
SDR
payment of non-consolidated amounts before
October 30, 2000
|
|
Comparability of treatment provision
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In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of the Republic of Benin commits itself to seek from all its external creditors debt reduction and reorganisation arrangements on terms comparable in net present value to those set forth in the present Agreed Minute 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 the Republic of Benin commits itself to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- a treatment not more favorable than that accorded to the Participating Creditor Countries for credits of comparable maturity and legal nature.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Benin with its creditors not listed in the present Agreed Minute on the one hand, and 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 Minute, the level of cash payments received by those creditors from the Government of the Republic of Benin as compared to their share in the Benin'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 the Republic of Benin and the creditors not listed in the present Agreed Minute.
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Cutoff date
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March 31, 1989
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Organisation of the session
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Participating creditors
FRANCE
,
GERMANY
,
ITALY
,
NETHERLANDS
,
NORWAY
,
RUSSIAN FEDERATION
,
UNITED KINGDOM
Observers
AUSTRALIA
,
AUSTRIA
,
CANADA
,
DENMARK
,
FINLAND
,
JAPAN
,
SPAIN
,
SWEDEN
,
SWITZERLAND
,
UNITED STATES OF AMERICA
,
IMF
,
World Bank
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