BURUNDI
Debt Treatment
-
March 04, 2004
|
Supporting aggreements with the international institutions
|
program with the IMF : Poverty reduction and growth facility (PRGF)
approved on
January 23, 2004
Download the IMF report :
PRGF document
|
|
Total external debt of the country
|
$1217 million
as of
January 01, 2004
,
representing
203%
$130 million
of which being due to the Paris Club as of
January 01, 2004
|
|
Amounts treated
|
$85 million
,
of which
$4 million
being canceled
,
of which
$81 million
being rescheduled
|
|
Categories of debts treated
|
treatment of maturities falling due from
January 01, 2004
up to
June 30, 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
|
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 : (I) all ODA loans and credits ; (II) other amouts of outstanding credits and loans on debts mentioned in Article II-1, up to 10% of the amounts of outstanding credits as of March 4, 2004 or up to an amount of 10 million SDR, whichever is higher.
good will clause
Participating Creditor Countries agree to grant a topping-up of the debt reduction of the present Agreed Minute to Cologne terms once the Government of the Republic of Burundi reaches its Decision Point under the Enhanced Debt Initiative for the Heavily Indebted Poor Countries, provided that the Government of the Republic of Burundi maintains satisfactory relations with the Participating Creditor Countries and the IMF.
free transferability provision
The Government of the Republic of Burundi guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency as at March 4, 2004 by the private debtors in the Republic of Burundi for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been or will be deposited in the Central Bank of the Republic of Burundi.
Phases
-
First phase :
From
January 01, 2004
up to
December 31, 2004
implemented at the signature of the agreement
-
Second phase :
From
January 01, 2005
up to
December 31, 2005
implemented at
September 15, 2005
-
Third phase :
From
January 01, 2006
up to
June 30, 2009
implemented at
December 04, 2006
de minimis threshold of
100 000
SDR
payment of non-consolidated amounts before
September 01, 2004
|
|
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 Burundi 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 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.
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Cutoff date
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June 20, 1999
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Organisation of the session
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The meeting was chaired by
M. Ramon Fernandez,
Vice Chairman of the Paris Club
The head of the debtor country's delegation was
M. Athanase Gahungu,
Minister of Finance
Participating creditors
AUSTRIA
,
FRANCE
,
JAPAN
,
RUSSIAN FEDERATION
Observers
BELGIUM
,
GERMANY
,
ITALY
,
UNITED STATES OF AMERICA
,
IMF
,
OECD
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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