HONDURAS
Debt Treatment
-
May 12, 2005
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Supporting aggreements with the international institutions
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program with the IMF : arrangement under the Poverty Reduction and Growth Facility (PRGF)
approved on
February 18, 2004
Download the IMF report :
Letter of Intent dated on February 2, 2004
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HIPC Initiative
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Completion point
reached on
April 05, 2005
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Total external debt of the country
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$4800 million
as of
December 31, 2003
,
$1473 million
of which being due to the Paris Club as of
March 01, 2005
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Amounts treated
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$316 million
,
of which
$206 million
being canceled
,
of which
$110 million
being rescheduled
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Categories of debts treated
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treatment of arrears as of
February 28, 2005
,
treatment of the stock as of
March 01, 2005
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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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payment of non-consolidated amounts before
December 01, 2005
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Comparability of treatment provision
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The Republic of Honduras was declared eligible to the Enhanced HIPC initiative by the IDA and the IMF in 1999 and was declared to have reached its Completion Point respectively on March 28 and April 5, 2005. In this context, the Republic of Honduras commits to seek promptly from all its external creditors which are not participating in these Agreed Minutes, 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 shall be taken into account, including the level of cash payments received by those creditors as compared to their share in the Republic of Honduras' 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 Republic of Honduras and creditor countries not listed in these Agreed Minutes.
Consequently, the Republic of Honduras commits not to accord any category of creditors -and in particular creditor countries not participating in these Agreed Minutes, 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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June 01, 1990
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Organisation of the session
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The meeting was chaired by
M. Ramon Fernandez,
Vice President of the Paris Club
The head of the debtor country's delegation was
M. William Chong Wong,
Minister of Finance
Participating creditors
CANADA
,
DENMARK
,
FRANCE
,
GERMANY
,
ITALY
,
JAPAN
,
NETHERLANDS
,
SPAIN
,
SWITZERLAND
,
UNITED STATES OF AMERICA
Observers
NORWAY
,
UNITED KINGDOM
,
IMF
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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