NIGERIA
Debt Treatment
-
October 20, 2005
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Supporting aggreements with the international institutions
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upper credit tranche program with the IMF : Policy Support Instrument (PSI)
approved on
October 17, 2005
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Total external debt of the country
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$35900 million
as of
December 31, 2004
,
representing
92%
of goods and services exports (source : IMF report dated on October 7, 2005)
$30066 million
of which being due to the Paris Club as of
September 15, 2005
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Amounts treated
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$30066 million
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Categories of debts treated
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1) Payment of arrears due as of 14/09/2005 and prepayment at par of senior "levelling up" debt. Cancellation of 33% of pre cut off date debt and deferral of the debt remaining due.
2) Payment of post cut off date debt upon entry into force of phase 2. Cancellation of 34% of pre cut off date debt. Buy back by Nigeria of the debt remaining due after cancellation and repayment.
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Specific provisions
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cancellation phasing
First phase : cancellation of 33% on eligible debt after payment of arrears by Nigeria.
Second phase : cancellation of 34% of eligible debt after approval of the first review under the Policy Support Instrument by the IMF and repayment of post cut off date debt.
free transferability provision
The Nigerian Government guarantees free and unrestricted access to the foreign exchange market, allowing immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Nigeria for servicing their foreign debt owed to or guaranteed by the Participating Creditor Countries or their appropriate institutions, and not subject to the present consolidation. In case of payments on these debts deposited before the signature of the present Agreed Minute in local currency by the private debtors with the local commercial banks, with the view to their transfer, the Nigerian Government shall allow the immediate transfer of the foreign exchange counterpart of these deposits.
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Comparability of treatment provision
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In order to secure comparable treatment of its debt due, as of the date of these Agreed Minutes, to all its external public or private creditors, the Nigerian Government commits to seek promptly from all its external creditors comprehensive debt treatment on terms comparable to those set forth in these Agreed Minutes, while trying to avoid discrimination among different categories of creditors. Consequently, the Nigerian Government commits to accord all categories of creditors -and in particular creditor countries not participating in these Agreed Minutes, and private creditors- a treatment not more favourable than that accorded to the Participating Creditor Countries for credits of comparable maturity.
For the purpose of the comparison between the arrangements concluded by the Nigerian Government with its creditors not listed in these Agreed Minutes on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements shall be taken into account, including the real exposure of the creditor not listed in these Agreed Minutes, the level of cash payments received by those creditors from the Nigerian Government as compared to their share in Nigeria'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 Nigerian Government and the creditors not listed in these Agreed Minutes.
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Cutoff date
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October 01, 1985
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Organisation of the session
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The meeting was chaired by
M. Xavier Musca,
Chairman of the Paris Club
The head of the debtor country's delegation was
Mme Ngozi Okonjo-Iweala,
Minister of Finance
Participating creditors
AUSTRIA
,
BELGIUM
,
BRAZIL
,
DENMARK
,
FINLAND
,
FRANCE
,
GERMANY
,
ITALY
,
JAPAN
,
NETHERLANDS
,
RUSSIAN FEDERATION
,
SPAIN
,
SWITZERLAND
,
UNITED KINGDOM
,
UNITED STATES OF AMERICA
Observers
AUSTRALIA
,
CANADA
,
NORWAY
,
African Development Bank
,
European Commission
,
IMF
,
OECD
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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