HAITI
Debt Treatment
-
December 12, 2006
|
Supporting aggreements with the international institutions
|
IMF program supported by an Arrangement under the Poverty Reduction and Growth Facility (PRGF)
approved on
November 20, 2006
Download the IMF report :
PRGF document
Download the IMF report :
Decision Point Document
|
|
HIPC Initiative
|
Decision point
reached on
November 21, 2006
|
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Total external debt of the country
|
$1332 million
as of
September 30, 2005
,
$194 million
of which being due to the Paris Club as of
October 01, 2006
|
|
Amounts treated
|
$69 million
,
of which
$7 million
being canceled
,
of which
$62 million
being rescheduled
|
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Categories of debts treated
|
treatment of arrears as of
October 31, 2006
,
treatment of maturities falling due from
November 01, 2006
up to
October 31, 2009
|
|
Repayment profile
|
treatment under
Cologne terms
(cancellation rate of
90% )
-
repayment of non ODA credits over
23
years
,
with
6
years of grace
, after cancellation to a rate of
90%
-
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 with the exception of loans mentioned in Article II-1 c);
(ii) the amounts of other outstanding credits, loans and consolidations mentioned in Article II paragraph 1 with the exception of loans mentioned in c), up to 20% of the amounts of outstanding credits as of 28 February 1995 or up to an amount of 20 million dollars of the United States of America, whichever is higher.
good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Government of the Republic of Haiti under the Enhanced HIPC Initiative, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the Completion Point designed to examine the question of the Republic of Haiti's outstanding debt stock and to make the necessary effort in favour of the Republic of Haiti to allow it to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Government of the Republic of Haiti maintains satisfactory relations with the Participating Creditor Countries and a sound adjustment track record;
- the Executive Boards of the IMF and the IDA decide that the Republic of Haiti has reached its Completion Point under the enhanced HIPC initiative.
Phases
-
First phase :
From
November 01, 2006
up to
October 31, 2007
implemented at the signature of the agreement
-
Second phase :
From
November 01, 2007
up to
October 31, 2008
implemented at
March 18, 2008
-
Third phase :
From
November 01, 2008
up to
October 31, 2009
not implemented yet
payment of non-consolidated amounts before
June 30, 2007
|
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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 Haiti commits to seek from all its external creditors debt reduction and reorganization arrangements on terms comparable in net present value to those set forth in these 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 Haiti commits to grant all categories of creditors - and in particular creditor countries not participating in these Agreed Minutes, commercial banks and suppliers - a treatment not more favourable than the one granted to the Participating Creditor Countries.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Haiti with the creditors not participating in these Agreed Minutes and those concluded with the Participating Creditor Countries, all relevant elements shall be taken into account, including the exposure of the creditors not participating in these Agreed Minutes, the level of cash payments received by those creditors from the Government of the Republic of Haiti as compared to their share in the Republic of Haiti'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 the Republic of Haiti and the creditors not participating in these Agreed Minutes.
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Cutoff date
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October 01, 1993
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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. Daniel Dorsainvil,
Minister of Economy and Finance
Participating creditors
BELGIUM
,
CANADA
,
DENMARK
,
FRANCE
,
GERMANY
,
ITALY
,
NETHERLANDS
,
SPAIN
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
JAPAN
,
NORWAY
,
SWITZERLAND
,
IMF
,
Inter-American Development Bank
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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