ETHIOPIA
Debt Treatment
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May 13, 2004
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Supporting aggreements with the international institutions
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Programme supported by an Arrangement under the Poverty Reduction and Growth Facility (PRGF)with the IMF
approved on
March 19, 2001
Download the IMF report :
Letter of Intent
Download the IMF report :
Completion Point Document for the Enhanced Heavily indebted Poor Countries (HIPC) Initiative
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HIPC Initiative
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Completion point
reached on
April 20, 2004
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Total external debt of the country
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$6845 million
as of
December 31, 2003
,
representing
277%
External debt in July 2001 NPV terms, divided by average of exports (1999 - 2001)
$1899 million
of which being due to the Paris Club as of
April 01, 2004
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Amounts treated
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$1487 million
,
of which
$1296 million
being canceled
,
of which
$191 million
being rescheduled
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Categories of debts treated
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treatment of arrears as of
March 31, 2003
,
treatment of the stock as of
April 01, 2004
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Repayment profile
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treatment under
HIPC Initiative Exit terms
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Specific provisions
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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 debts;
(ii) the amounts of other outstanding credits, loans and consolidations mentioned in paragraph 1. above, up to 20% of the amounts of outstanding credits as of November 30, 1992 or up to an amount of 20 million SDR, whichever is higher.
Participating creditor countries and the Government of Ethiopia will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on Ethiopia's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat including: its nature and purpose; the parties to the debt swap; the amount, type and value of the debt treated; the price of sale to investors and the expense of Ethiopia.
payment of non-consolidated amounts before
December 31, 2004
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Comparability of treatment provision
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The Federal Democratic Republic of Ethiopia was declared eligible to the Enhanced HIPC Initiative by the IMF and the IDA in November 2001 and was declared to have reached its Completion Point on April 20, 2004. In this context, the Federal Democratic Republic of Ethiopia commits to seek promptly, from all its external creditors which are not participating in the present Agreed Minute, their appropriate contribution in terms of debt relief to the Enhanced HIPC Initiative, on top of traditional debt relief mechanisms and consistent with the proportional burden sharing based on their relative exposure in net present value of total external debt at Decision Point after the full use of traditional debt relief mechanisms.
The appropriate nature of the debt relief provided will be assessed not only on the basis of the reduction in the net present value of the debt as computed under Appropriate Market Rate, but also on the terms of repayment of the debts not cancelled. For this purpose, all relevant elements will be taken into account, including the level of cash payments received by those creditors as compared to their share in the Federal Democratic Republic of Ethiopia's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Federal Democratic Republic of Ethiopia and creditor countries not listed in the present Agreed Minute.
Consequently, the Federal Democratic Republic of Ethiopia commits not to accord any category of creditors and in particular creditor countries not participating in the present Agreed Minute, commercial banks, suppliers and bondholders - a treatment more favourable than that accorded to the Participating Creditor Countries.
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Cutoff date
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December 31, 1989
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Organisation of the session
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The meeting was chaired by
Mme Odile Renaud-Basso,
Co Chairperson of the Paris Club
The head of the debtor country's delegation was
M. Sufian Ahmed,
Minister of Finance and Economic Development.
Participating creditors
AUSTRALIA
,
AUSTRIA
,
BELGIUM
,
FINLAND
,
FRANCE
,
GERMANY
,
ITALY
,
JAPAN
,
NETHERLANDS
,
RUSSIAN FEDERATION
,
SWEDEN
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
CANADA
,
SPAIN
,
IMF
,
OECD
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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