MADAGASCAR
Debt Treatment
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November 16, 2004
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Supporting aggreements with the international institutions
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IMF programme supported by an Arrangment under thbe Poverty Reduction and Growth Facility (PRGF)
approved on
March 01, 2001
Download the IMF report :
Letter of Intent of the government of Madagascar
Download the IMF report :
Completion Point Document for the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative
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HIPC Initiative
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Completion point
reached on
October 21, 2004
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Total external debt of the country
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$4843 million
as of
December 31, 2003
,
$1572 million
of which being due to the Paris Club as of
October 01, 2004
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Amounts treated
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$1057 million
,
of which
$752 million
being canceled
,
of which
$305 million
being rescheduled
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Categories of debts treated
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treatment of arrears as of
September 30, 2004
,
treatment of the stock as of
October 01, 2004
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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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possibility to conduct debt swaps
On a voluntary and bilateral basis, the Government of each 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 ;
(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 December 31, 1996 or up to an amount of SDR 30 million, whichever is higher.
Participating creditor countries and the Government of the Republic of Madagascar will inform semi-annually the Secretariat of the Paris Club, who will inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Madagascar's economy and on the evolution of creditor's exposure will be transmitted to the Secretariat including : its nature and purpose ; the parties to the debt swap ; the amount, type and value of the debt treated ; the price of sale to investors and the expense of the Republic of Madagascar.
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Comparability of treatment provision
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The Republic of Madagascar 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 on October 21, 2004. In this context, the Republic of Madagascar commits to seek promptly from all its external creditors which are not participating in the present Agreed Minute, 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 Madagascar'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 Madagascar and creditor countries not listed in the present Agreed Minute.
Consequently, the Republic of Madagascar commits not to accord any category of creditors -and in particular creditor countries not participating in the present Agreed Minute, 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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July 01, 1983
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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. Jacques Sylla,
Prime Minister
Participating creditors
AUSTRIA
,
CANADA
,
FRANCE
,
GERMANY
,
ISRAEL
,
ITALY
,
JAPAN
,
RUSSIAN FEDERATION
,
SPAIN
,
SWEDEN
,
SWITZERLAND
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
NORWAY
,
IMF
,
OECD
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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