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THE DEBT TREATED IN THE PARIS CLUB FRAMEWORK
- The debt of developping countries
  - Generalities
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- The debt treated in Paris Club agreements
  - Definition of debt treated
  - Flow and stock treatments
KINDS OF DEBT TREATMENTS GRANTED
- Rescheduling and cancellation
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Home page > LIBERIA 20100916

LIBERIA Debt Treatment - September 16, 2010

Supporting aggreements with the international institutions	IMF programme supported by an Arrangement under the Extended Credit Facility (ECF) approved on March 14, 2008 Download the IMF report : ECF document Download the IMF report : Completion Point document under the enhanced Debt Initiative for the Heavily Indebted Poor Countries
HIPC Initiative	Completion point reached on June 29, 2010
Total external debt of the country	$4400 million as of December 31, 2007 , $1366 million of which being due to the Paris Club as of January 01, 2010
Amounts treated	$1366 million , of which $1258 million being canceled , of which $107 million being rescheduled
Categories of debts treated	treatment of the stock as of July 01, 2010
Repayment profile	treatment under HIPC Initiative Exit terms Creditors also committed on a bilateral basis to cancel the remaining USD 107 million. As a result of this agreement and additional bilateral debt relief, the Republic of Liberia's debt to Paris Club will be entirely cancelled.
Comparability of treatment provision	The Republic of Liberia was declared eligible to the enhanced HIPC Initiative by the IDA and the IMF in February 2007 and was declared to have reached its Completion Point in June 2010. In this context, the Republic of Liberia commits to seek promptly from all its external creditors which are not participating in the Agreed Minutes dated 16 September 2010, 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 Republic of Liberia’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 Republic of Liberia and all their other creditors. Consequently, the Republic of Liberia commits not to accord any category of external creditors -and in particular litigating creditors, creditor countries not participating in the Agreed Minutes dated 16 September 2010, commercial banks, suppliers and bondholders- a treatment more favourable than that accorded to the Participating Creditor Countries.
Cutoff date	January 01, 1983
Organisation of the session	The meeting was chaired by Ms. Delphine d'AMARZIT, Co Chairperson of the Paris Club The head of the debtor country's delegation was Mr. Augustine NGAFUAN, Minister of Finance Participating creditors BELGIUM , DENMARK , FINLAND , FRANCE , GERMANY , ITALY , JAPAN , NETHERLANDS , NORWAY , SWEDEN , SWITZERLAND , UNITED KINGDOM , UNITED STATES OF AMERICA Observers RUSSIAN FEDERATION , IMF , UNCTAD , World Bank Press release Read the press release Download the press release in PDF