HONDURAS
Debt Treatment
-
April 14, 2004
|
Supporting aggreements with the international institutions
|
program supported by an Arrangement under the Poverty Reduction and Growth Facility with the IMF
approved on
February 18, 2004
|
|
HIPC Initiative
|
Decision point
reached on
July 06, 2000
|
|
Total external debt of the country
|
$4288 million
as of
December 31, 1999
,
$1431 million
of which being due to the Paris Club as of
January 01, 2004
|
|
Amounts treated
|
$361 million
,
of which
$147 million
being canceled
,
of which
$214 million
being rescheduled
|
|
Categories of debts treated
|
treatment of arrears as of
December 31, 2003
,
treatment of maturities falling due from
January 01, 2004
up to
June 30, 2005
|
|
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) the amounts of outstanding loans mentioned in paragraph 1. above as regards ODA loans;
(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 September 30, 1992 or up to an amount of 20 million dollars of the United States of America, whichever is higher.
free transferability provision
The Government of the Republic of Honduras guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Honduras for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been deposited in the Central Bank of Honduras.
Phases
-
First phase :
From
January 01, 2004
up to
December 31, 2004
implemented at the signature of the agreement
-
Second phase :
From
January 01, 2005
up to
June 30, 2005
implemented at
May 02, 2005
payment of non-consolidated amounts before
October 31, 2004
|
|
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 Honduras 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 the present Agreed Minute 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 Honduras commits to accord all categories of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- a treatment not more favourable than that accorded to the Participating Creditor Countries.
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Cutoff date
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June 01, 1990
|
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Organisation of the session
|
The meeting was chaired by
Mme Stéphane PALLEZ,
Co-Chairperson of the Paris Club
The head of the debtor country's delegation was
M. José Arturo ALVARADO,
Minister of Finance of Honduras
Participating creditors
CANADA
,
DENMARK
,
FRANCE
,
GERMANY
,
ITALY
,
JAPAN
,
NETHERLANDS
,
SPAIN
,
SWITZERLAND
,
UNITED STATES OF AMERICA
Observers
NORWAY
,
RUSSIAN FEDERATION
,
UNITED KINGDOM
,
IMF
,
Inter-American Development Bank
,
World Bank
Press release
Read the press release
Download the press release in PDF
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