CHAD
Debt Treatment
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June 12, 2001
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Supporting aggreements with the international institutions
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IMF program under the Poverty Reduction and Growth Facility (PRGF) with the IMF
approved on
January 07, 2000
Download the IMF report :
Letter of Intent
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
May 22, 2001
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Total external debt of the country
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$1066 million
as of
December 31, 2000
,
representing
214%
of exports of goods and services
$44 million
of which being due to the Paris Club as of
April 30, 2001
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Amounts treated
|
$15 million
,
of which
$10 million
being canceled
,
of which
$5 million
being rescheduled
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Categories of debts treated
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treatment of arrears as of
April 30, 2001
,
treatment of maturities falling due from
May 01, 2001
up to
September 30, 2005
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Repayment profile
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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 profile
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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 outstanding consolidations mentioned in paragraph 1. above, up to 10% of the amounts of outstanding credits as of March 31, 1994 or up to an amount of SDR 10 million, whichever is higher.
Participating creditor countries and the Government of the Republic of Chad 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 Chad'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 Chad.
good will clause
Given the decision by Paris Club Creditors to contribute to the exceptional assistance in favour of the Republic of Chad 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 Chad's outstanding debt stock and to make the necessary effort, in favour of the Republic of Chad to reach the objective of its debt sustainability in the context of an equitable burden sharing among creditors, provided that :
- the Republic of Chad maintains satisfactory relations with the Participating Creditor Countries, fully implements all the agreements signed with them and maintains a sound adjustment track record ;
- the Boards of the International Monetary Fund and the International Development Association decide that the Republic of Chad has reached its completion point under the enhanced Debt Initiative for the Heavily Indebted Poor Countries.
Phases
-
First phase :
From
May 01, 2001
up to
March 30, 2002
implemented at the signature of the agreement
-
Second phase :
From
April 01, 2002
up to
September 30, 2005
implemented at
November 13, 2002
payment of non-consolidated amounts before
November 30, 2001
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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 Chad commits itself 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 Chad commits itself 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 favorable 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 Chad 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 will 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 Chad as compared to their share in the Chad'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 Chad and the creditors not listed in the present Agreed Minute.
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Cutoff date
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June 30, 1989
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Organisation of the session
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The meeting was chaired by
Monsieur Bruno Bézard,
Vice-President of the Paris Club
The head of the debtor country's delegation was
Monsieur Mahamat Louani Goadi,
Finance Minister
Participating creditors
FRANCE
,
GERMANY
,
ITALY
,
NETHERLANDS
,
RUSSIAN FEDERATION
Observers
AUSTRIA
,
SPAIN
,
African Development Bank
,
IMF
,
OECD
,
UNCTAD
,
World Bank
Press release
Read the press release
Download the press release in PDF
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