NICARAGUA
Debt Treatment
-
December 13, 2002
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Supporting aggreements with the international institutions
|
program with the IMF
approved on
December 04, 2002
Download the IMF report :
letter of intent
|
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HIPC Initiative
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Decision point
reached on
December 21, 2000
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Total external debt of the country
|
$6374 million
as of
December 31, 2001
,
representing
250%
of GDP
$1638 million
of which being due to the Paris Club as of
September 30, 2002
|
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Amounts treated
|
$580 million
,
of which
$406 million
being canceled
,
of which
$174 million
being rescheduled
|
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Categories of debts treated
|
treatment of arrears as of
September 30, 2002
,
treatment of maturities falling due from
October 01, 2002
up to
September 30, 2005
|
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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
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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 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 Official Development Assistance loans;
(ii) the amounts of other outstanding credits, loans and consolidations mentioned in Article II paragraph 1, up to 20% of the amounts of outstanding credits as of 31 December 1991 or up to an amount of 15 million SDR, 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 Nicaragua under the enhanced Debt Initiative for the Heavily Indebted Poor Countries, 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 Nicaragua's outstanding debt stock and to make the necessary effort, in favour of the Republic of Nicaragua 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 Nicaragua 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 Nicaragua has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
free transferability provision
The Government of the Republic of Nicaragua guarantees the immediate and unrestricted tranfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Nicaragua for servicing their foreign debt owed to or gbuaranteed by the Participating or Observer Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been deposited in theCentral Bank of Nicaragua on or after 31 December 1991.
Phases
-
First phase :
From
October 01, 2002
up to
September 30, 2003
implemented at the signature of the agreement
-
Second phase :
From
October 01, 2003
up to
September 30, 2004
implemented at
November 17, 2003
-
Third phase :
From
October 01, 2004
up to
September 30, 2005
not implemented yet
payment of non-consolidated amounts before
June 30, 2003
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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 Nicaragua commits to seek from all its external creditors debt reduction and reorganisation 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 Nicaragua 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.
For the purpose of the comparison between the arrangements concluded by the Government of the Republic of Nicaragua with its creditors not listed in the present Agreed Minute on the one hand, and arrangements with the Participating Creditor Countries on the other hand, all relevant elements shall be taken into account, including the exposure of the creditors not listed in the present Agreed Minute, the level of cash payments received by those creditors from the Government of the Republic of Nicaragua as compared to their share in the Republic of Nicaragua's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganised claims and in particular their repayment terms whatever forms they take, and in general the financial relations between the Government of the Republic of Nicaragua and the creditors not listed in the present Agreed Minute.
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Cutoff date
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November 01, 1988
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Organisation of the session
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The meeting was chaired by
Ambroise Fayolle,
Vice Chairman of the Paris Club
The head of the debtor country's delegation was
Mario B. Alonso I.,
President of the Central Bank of Nicaragua
Participating creditors
AUSTRALIA
,
AUSTRIA
,
FRANCE
,
GERMANY
,
ISRAEL
,
ITALY
,
NETHERLANDS
,
RUSSIAN FEDERATION
,
SPAIN
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
BRAZIL
,
CANADA
,
DENMARK
,
JAPAN
,
IMF
,
Inter-American Development Bank
,
OECD
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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