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Supporting aggreements with the international institutions
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Programme with the IMF under the Poverty Reduction and Growth Facility (PRGF)
approved on
August 05, 2005
Download the IMF report :
PRGF document
Download the IMF report :
Decision Point Document for the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative
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HIPC Initiative
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Decision point
reached on
December 20, 2000
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Total external debt of the country
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$100 million
as of
December 31, 2004
,
representing
449%
in percent of exports
$44 million
of which being due to the Paris Club as of
April 01, 2005
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Categories of debts treated
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treatment of maturities falling due from
May 01, 2001
up to
December 31, 2007
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Repayment profile
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treatment under
Cologne terms
(cancellation 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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good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Government of Sao Tome and Principe under the Enhanced HIPC Initiative, the Participating Creditor Countries declare their readiness in principle to hold a meeting at the Completion Point designed to examine the question of the outstanding debt stock and to make the necessary effort in its favour to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that:
- the Government of Sao Tome and Principe maintains satisfactory relations with the Participating Creditor Countries and a sound adjustment track record;
- Sao Tome and Principe reaches its Completion Point under the enhanced HIPC initiative.
Phases
-
First phase :
From
May 01, 2001
up to
December 31, 2005
implemented at the signature of the agreement
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Second phase :
From
January 01, 2006
up to
December 31, 2006
implemented at
September 29, 2006
-
Third phase :
From
January 01, 2007
up to
December 31, 2007
implemented at
May 24, 2007
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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 Sao Tome and Principe commits to seek from all its external creditors debt reduction and reorganization arrangements on terms comparable in net present value to those set forth in these Terms of Reference 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 Sao Tome and Principe commits to accord all categories of creditors -and in particular creditor countries not participating in these Terms of Reference, 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 Sao Tome and Principe with the non participating countries and those concluded with the Participating Creditor Countries, all relevant elements shall be taken into account, including the exposure of the creditors not listed in these Terms of Reference, the level of cash payments received by those creditors from the Government of Sao Tome as compared to their share in Sao Tome'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 Government of Sao Tome and Principe and the creditors not listed in these Terms of Reference.
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Cutoff date
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April 01, 1999
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Organisation of the session
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The meeting was chaired by
M. Ambroise Fayolle,
Co-President of the Paris Club
The head of the debtor country's delegation was
Mme Joana Damiana da Graça Varela,
Director of Treasury and Government Assets
Participating creditors
BELGIUM
,
FRANCE
,
GERMANY
,
RUSSIAN FEDERATION
,
SPAIN
Observers
IMF
,
World Bank
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