TOGO Debt Treatment - June 12, 2008

• repayment of non ODA credits over 23 years , with 6 years of grace , after cancellation to a rate of 67%
• repayment of ODA credits over 40 years with 16 years of grace

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) the amounts of outstanding loans and consolidations as regards ODA debts, with the exception of those administered by IDA and provided by the European Union member States;

(ii) the amounts of other outstanding credits, loans and consolidations with the exception of those administered by IDA and provided by the European Union member States, up to 10% of the amounts of outstanding loans, credits and consolidations as of 30 June 1992 or up to an amount of 20 million of dollars of the United States of America, whichever is higher.

good will clause

Phases

• First phase : From April 01, 2008 up to March 31, 2009 implemented at the signature of the agreement
• Second phase : From April 01, 2009 up to March 31, 2010 implemented at July 17, 2009
• Third phase : From April 01, 2010 up to March 31, 2011 implemented at July 23, 2010

In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of the Togolese Republic 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 Agreed Minutes dated 12 June 2008 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 Togolese Republic commits to accord all categories of creditors -and in particular creditor countries not participating in the Agreed Minutes dated 12 June 2008, 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 Togolese Republic with its creditors not listed in the Agreed Minutes dated 12 June 2008 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 Agreed Minutes dated 12 June 2008, the level of cash payments received by those creditors from the Government of the Togolese Republic as compared to their share in the Togolese Republic’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 Togolese Republic and the creditors not listed in the Agreed Minutes dated 12 June 2008.

Participating creditors

Observers

Press release