GRENADA
Debt Treatment
-
May 12, 2006
|
Supporting aggreements with the international institutions
|
program with the IMF under the Poverty Reduction and Growth Facility (PRGF)
approved on
April 17, 2006
|
|
Total external debt of the country
|
$437 million
as of
December 31, 2005
,
$17 million
of which being due to the Paris Club as of
January 01, 2006
|
|
Amounts treated
|
$16 million
|
|
Categories of debts treated
|
treatment of arrears as of
December 31, 2005
,
treatment of maturities falling due from
January 01, 2006
up to
December 31, 2008
|
|
Repayment profile
|
treatment under
Classic terms
-
repayment of non ODA credits over
12
years
,
with
5
years of grace
-
repayment of ODA credits over
12
years
with
5
years of grace
|
|
Specific provisions
|
good will clause
At the request of the representatives of Grenada, Paris Club Creditors agreed in principle to meet in order to examine the situation of Grenada's debt under the Evian Approach at the end of the current Agreement. They shall assess the sustainability of Grenada's debt and Grenada's commitment to policies that shall secure an exit from the Paris Club and to implementing a comparable treatment from its other external creditors.
Based on that assessment and if Grenada fulfils the criteria here above mentioned and provided that Grenada has established a satisfactory track-record under these Agreed Minutes, made all payments on due date, and concluded a follow-up IMF programme, Paris Club creditors expressed their willingness to consider a debt treatment under the Evian Approach on terms tailored to Grenada's debt situation.
Phases
-
First phase :
From
January 01, 2006
up to
December 31, 2006
implemented at the signature of the agreement
-
Second phase :
From
January 01, 2007
up to
December 31, 2007
implemented at
September 19, 2008
-
Third phase :
From
January 01, 2008
up to
December 31, 2008
implemented at
September 19, 2008
payment of non-consolidated amounts before
November 30, 2006
|
|
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 Grenada commits to seek promptly from all its external creditors debt reorganisation arrangements on terms comparable to those set forth in these Agreed Minutes, while trying to avoid discrimination among different categories of creditors. Consequently, the Government of Grenada commits to accord all categories of creditors -and in particular creditor countries not participating in these Agreed Minutes, and private creditors- a treatment not more favourable than that accorded to the Participating Creditor Countries for credits of comparable maturity.
For the purpose of the comparison between the arrangements concluded by the Government of Grenada with its creditors not listed in these Agreed Minutes on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements shall be taken into account, including the real exposure of the creditors not listed in these Agreed Minutes, the level of cash payments received by those creditors from the Government of Grenada as compared to their share in Grenada'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 Government of Grenada and the creditors not listed in these Agreed Minutes.
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Cutoff date
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June 30, 2004
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Organisation of the session
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The meeting was chaired by
M. Ambroise Fayolle,
Co Chairman of the Paris Club
The head of the debtor country's delegation was
M. Anthony Boatswain,
Minister of Finance and Planning
Participating creditors
BELGIUM
,
FRANCE
,
RUSSIAN FEDERATION
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
CANADA
,
GERMANY
,
ITALY
,
NETHERLANDS
,
European Commission
,
IMF
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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