CONGO
Debt Treatment
-
December 16, 2004
|
Supporting aggreements with the international institutions
|
Poverty Reduction and Growth Facility
approved on
December 06, 2004
|
|
Total external debt of the country
|
$8570 million
as of
December 31, 2003
,
$4694 million
of which being due to the Paris Club as of
September 30, 2004
|
|
Amounts treated
|
$3016 million
,
of which
$1680 million
being canceled
,
of which
$1336 million
being rescheduled
|
|
Categories of debts treated
|
treatment of maturities falling due from
October 01, 2004
up to
September 30, 2007
|
|
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) the amounts of outstanding loans and consolidations mentioned in Article II-1 as regards ODA debts;
(ii) the amounts of other outstanding credits, loans and consolidations mentioned in Article II-1, up to 20% of the amounts of outstanding loans, credits and consolidations as of August 31, 1990 or up to an amount of 20 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 Minutes to Cologne terms once the Government of the Republic of Congo reaches its Decision Point under the Enhanced Debt Initiative for the Heavily Indebted Poor Countries, provided that the Government of the Republic of Congo maintains satisfactory relations with the Participating Creditor Countries and the IMF.
free transferability provision
The Government of the Republic of Congo guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency as of December 16, 2004 by the private debtors in the Republic of Congo 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 Banque des Etats d'Afrique Centrale.
Phases
-
First phase :
From
October 01, 2004
up to
September 30, 2005
implemented at the signature of the agreement
-
Second phase :
From
October 01, 2005
up to
September 30, 2006
implemented at
August 01, 2006
-
Third phase :
From
October 01, 2006
up to
September 30, 2007
not implemented yet
payment of non-consolidated amounts before
June 01, 2005
|
|
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 the Republic of Congo 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 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 the Republic of Congo commits to accord all categories of creditors -and in particular creditor countries not participating in the present 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 the Republic of Congo with its creditors not listed in the present 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 the Republic of Congo as compared to their share in the Republic of Congo'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 Congo and the creditors not listed in the present Agreed Minutes.
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Cutoff date
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January 01, 1986
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Organisation of the session
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The meeting was chaired by
Madame Odile RENAUD-BASSO,
Co Chairman of the Paris Club
The head of the debtor country's delegation was
Mr. Rigobert Roger ANDELY,
Minister of Economy, Finance and Budget
Participating creditors
BELGIUM
,
BRAZIL
,
CANADA
,
DENMARK
,
FRANCE
,
GERMANY
,
ITALY
,
RUSSIAN FEDERATION
,
SPAIN
,
SWITZERLAND
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
JAPAN
,
African Development Bank
,
IMF
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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