NICARAGUA
Debt Treatment
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March 04, 2004
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Supporting aggreements with the international institutions
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program with the IMF supported by the Poverty Reduction and Growth Facility
approved on
December 13, 2002
Download the IMF report :
Letter of Intent
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HIPC Initiative
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Completion point
reached on
January 23, 2004
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Total external debt of the country
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$6689 million
as of
December 31, 2002
,
$1579 million
of which being due to the Paris Club as of
January 01, 2004
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Amounts treated
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$1579 million
,
of which
$1338 million
being canceled
,
of which
$241 million M$
being rescheduled
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Categories of debts treated
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treatment of arrears as of
December 31, 2003
,
treatment of the stock as of
January 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 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 ODA loans;
(ii) the amounts of other outstanding credits, loans and consolidations mentioned in Article II-1, up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 15 million SDR, whichever is higher.
Participating Creditor Countries and the Government of the Republic of Nicaragua shall inform semi-annually the Secretariat of the Paris Club, who shall inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate the operation, its impact on the Republic of Nicaragua's economy and on the evolution of the creditor's exposure shall 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 Nicaragua.
free transferability provision
The Government of the Republic of Nicaragua guarantees the immediate and unrestricted transfer 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 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 Nicaragua on or after December 31, 1991.
payment of non-consolidated amounts before
September 01, 2004
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Comparability of treatment provision
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The Republic of Nicaragua 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 the 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 Nicaragua'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 Nicaragua and creditors not listed in the present Agreed Minute.
Consequently, the Republic of Nicaragua commits not to accord any category of creditors -including but not limited to creditor countries not participating in the present Agreed Minute, commercial banks, investment funds, 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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November 01, 1988
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Organisation of the session
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The meeting was chaired by
M. Ramon Fernandez,
Vice-Chairman of the Paris Club
The head of the debtor country's delegation was
M. Eduardo Montealegre R.,
Minister of Finance
Participating creditors
AUSTRALIA
,
AUSTRIA
,
FRANCE
,
GERMANY
,
ISRAEL
,
ITALY
,
JAPAN
,
NETHERLANDS
,
RUSSIAN FEDERATION
,
SPAIN
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
BELGIUM
,
DENMARK
,
IMF
,
Inter-American Development Bank
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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