CAMEROON
Debt Treatment
-
October 24, 1997
|
Supporting aggreements with the international institutions
|
IMF program
approved on
August 20, 1997
|
|
Amounts treated
|
$1270 million
|
|
Categories of debts treated
|
treatment of arrears as of
September 30, 1997
,
treatment of maturities falling due from
October 01, 1997
up to
December 31, 2000
|
|
Repayment profile
|
treatment under
Naples 50% terms
-
repayment of non ODA credits over
23
years
,
with
6
years of grace
, after cancellation to a rate of
50%
-
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) the amounts of outstanding loans [treated in the present Agreed Minute] as regards official development aid loans ;
(ii) the amounts of other outstanding credits, loans and consolidations [treated in the present Agreed Minute] , up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 20 million SDR, whichever is higher.
good will clause
In response to the request of the representatives of the Government of the Republic of Cameroon, the Participating Creditor Countries agreed in principle to a meeting to consider the matter of the Republic of Cameroon's debt service payments falling due after August 31, 2000 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before December 31, 1988 provided :
- that the Republic of Cameroon continues to have an appropriate arrangement with the International Monetary Fund ;
- that the Republic of Cameroon has reached with other creditors effective arrangements meeting the conditions described [in the present Agreed Minute] and has reported in writing to the Chairman of the Paris Club, pursuant to [the present Agreed Minute] ;
- and that the Republic of Cameroon has complied with all conditions set out in this Agreed Minute.
entry-into-force provision
8. The provisions [...] of the present Agreed Minute will come into force on March 31, 1998 provided that the Government of the Republic of Cameroon has made all payments due up to that date inclusive pursuant to the present Agreed Minute and especially those pursuant to [the present Agreed Minute].
Agreement implemented on
March 31, 1998
special account
To facilitate the implementation of the present Agreed Minute, the Government of the Republic of Cameroon will deposit in the special account established with the Banque de France, the equivalent of at least 13 billion CFA francs at the end of each month, commencing in December 1997 through August 2000 inclusive ; out of which for the period from December 1, 1997 up to March 31, 1998 12,5 billion CFA francs at the end of each month as payment of the amounts due pursuant to [...] the Agreed Minute dated November 16, 1995. The Government of the Republic of Cameroon undertakes to have this Bank notify the Chairman of the Paris Club as soon as each deposit has been made. The total amount approximates the amounts estimated to be payable to all Participating Creditor Countries from October 1, 1997 up to August 31, 2000 inclusive under the terms of the bilateral agreements to be concluded pursuant to the present Agreed Minute. As specific payments under these agreements become due, the Government of the Republic of Cameroon will draw on the special account to meet these payments ; no drawing will be made on the special account for any other use before all payments due from October 1, 1997 up to August 31, 2000 inclusive under these agreements have been made. Any drawing on this account will be made after a previous 15-day notice to the above Bank, which this Bank will notify immediately to the Chairman of the Paris Club. This scheme could be continued by agreement between the parties.
Phases
-
First phase :
From
October 01, 1997
up to
August 31, 1998
implemented at
March 31, 1998
-
Second phase :
From
September 01, 1998
up to
August 31, 1999
implemented at
December 23, 1998
-
Third phase :
From
September 01, 1999
up to
December 31, 2000
implemented at
October 20, 1999
de minimis threshold of
500 000
SDR
payment of non-consolidated amounts before
March 31, 1998
|
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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 Cameroon commits itself to negotiate debt reorganization arrangements with all its external creditors providing for the same debt reduction in net present value.
The Government of the Republic of Cameroon commits itself not to accord any category of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- a treatment more favourable than that accorded by the Participating Creditor Countries for credits of comparable maturity and legal nature.
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Organisation of the session
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Participating creditors
AUSTRIA
,
BELGIUM
,
CANADA
,
DENMARK
,
FINLAND
,
FRANCE
,
GERMANY
,
ITALY
,
JAPAN
,
NETHERLANDS
,
SPAIN
,
SWEDEN
,
SWITZERLAND
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
RUSSIAN FEDERATION
,
European Commission
,
IMF
,
OECD
,
UNCTAD
,
World Bank
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|
