Chronology of Bank Debt Restructurings and Bank Financial Packages, 1984–July 1994
Agreement classified by month of signature1
Agreement either signed or reached in principle (if signature has not yet taken place); not all signed agreements have become effective.
The restructuring agreement includes new financing.
Agreed in principle or tentative agreement with banks’ Steering Committees.
Refinancing agreement.
A separate club deal for new financing was arranged at the same time.
Preliminary agreement on interest arrears.
Chronology of Bank Debt Restructurings and Bank Financial Packages, 1984–July 1994
Agreement classified by month of signature1
Agreement classified by month of signature1 | |||||||||||||
1984 | |||||||||||||
Brazil: January2 Chile: January, June, and November Sierra Leone: January Guyana: January, July (deferment) Nicaragua: February (deferment) Peru: February3 Senegal: February Niger: March Mexico: April (new financing only) Sudan: April (modification of 1981 agreement) Yugoslavia: May Jamaica: June Zaïre: June (deferment) Poland: July2 Madagascar: October Liberia: December3 Zambia: December3 | |||||||||||||
1985 | |||||||||||||
Côte d’lvoire: March2 Mexico: March, August Costa Rica: May2 Senegal: May Philippines: May2 Zaïre: May (deferment) Guyana: July (deferment) Argentina: August2 Jamaica: September Panama: October2 Sudan: October (modification of 1981 agreement) Chile: November2 Colombia: December4 Ecuador: December2 Madagascar: December (modification of 1984 agreement) Yugoslavia: December | |||||||||||||
1986 | |||||||||||||
Dominican Republic: February Morocco: February Venezuela: February South Africa: March (standstill) Niger: April Zaïre: May (deferment) Brazil: July Uruguay: July Poland: September2 Romania: September Congo: October2,3 Côte d’lvoire: December | |||||||||||||
1987 | |||||||||||||
South Africa: March Mexico: March (public sector debt)2, August (private sector debt) Jamaica: May Mozambique: May3 Zaïre: May (deferment) Chile: June Honduras: June3 Madagascar: June (modification of 1985 agreement) Argentina: August2 Morocco: September Romania: September (modification of 1986 agreement) Bolivia: November (amendment to 1981 agreement) Nigeria: November2,3 Venezuela: November Gabon: December5 Philippines: December | |||||||||||||
1988 | |||||||||||||
Gambia, The: February Chile: August (amendment to 1987 agreement)3 Uruguay: March (modification of 1986 agreement) Côte d’lvoire: April2,3 Guinea: April Togo: May Poland: July Yugoslavia: September2 Malawi: October Brazil: November2 | |||||||||||||
1989 | |||||||||||||
Nigeria: April Zaïre: June (deferment) Poland: June (deferment)3 South Africa: October Honduras: August3 Niger: October3 Trinidad and Tobago: December | |||||||||||||
1990 | |||||||||||||
Philippines: February2 Mexico: February2 Madagascar: April Bulgaria: April (standstill)3 Costa Rica: May Jamaica: June Morocco: September Senegal: September Chile: December (amendments to previous agreements) Venezuela: December2 | |||||||||||||
1991 | |||||||||||||
Colombia: April5 Niger: April Uruguay: January2 Brazil: May6 U.S.S.R., former: December (deferment) Mozambique: December Nigeria: December | |||||||||||||
1992 | |||||||||||||
Algeria: March Gabon: May Philippines: July2 Guyana: November Argentina: December | |||||||||||||
1993 | |||||||||||||
Uganda: February Bolivia: March Russia: July3 South Africa: September Brazil: November2 Jordan: December | |||||||||||||
1994 | |||||||||||||
Dominican Republic: February Gabon: May Bulgaria: June Zambia: July Poland: September2 Ecuador: October | |||||||||||||
Under negotiation
|
Agreement either signed or reached in principle (if signature has not yet taken place); not all signed agreements have become effective.
The restructuring agreement includes new financing.
Agreed in principle or tentative agreement with banks’ Steering Committees.
Refinancing agreement.
A separate club deal for new financing was arranged at the same time.
Preliminary agreement on interest arrears.
Chronology of Bank Debt Restructurings and Bank Financial Packages, 1984–July 1994
Agreement classified by month of signature1
Agreement classified by month of signature1 | |||||||||||||
1984 | |||||||||||||
Brazil: January2 Chile: January, June, and November Sierra Leone: January Guyana: January, July (deferment) Nicaragua: February (deferment) Peru: February3 Senegal: February Niger: March Mexico: April (new financing only) Sudan: April (modification of 1981 agreement) Yugoslavia: May Jamaica: June Zaïre: June (deferment) Poland: July2 Madagascar: October Liberia: December3 Zambia: December3 | |||||||||||||
1985 | |||||||||||||
Côte d’lvoire: March2 Mexico: March, August Costa Rica: May2 Senegal: May Philippines: May2 Zaïre: May (deferment) Guyana: July (deferment) Argentina: August2 Jamaica: September Panama: October2 Sudan: October (modification of 1981 agreement) Chile: November2 Colombia: December4 Ecuador: December2 Madagascar: December (modification of 1984 agreement) Yugoslavia: December | |||||||||||||
1986 | |||||||||||||
Dominican Republic: February Morocco: February Venezuela: February South Africa: March (standstill) Niger: April Zaïre: May (deferment) Brazil: July Uruguay: July Poland: September2 Romania: September Congo: October2,3 Côte d’lvoire: December | |||||||||||||
1987 | |||||||||||||
South Africa: March Mexico: March (public sector debt)2, August (private sector debt) Jamaica: May Mozambique: May3 Zaïre: May (deferment) Chile: June Honduras: June3 Madagascar: June (modification of 1985 agreement) Argentina: August2 Morocco: September Romania: September (modification of 1986 agreement) Bolivia: November (amendment to 1981 agreement) Nigeria: November2,3 Venezuela: November Gabon: December5 Philippines: December | |||||||||||||
1988 | |||||||||||||
Gambia, The: February Chile: August (amendment to 1987 agreement)3 Uruguay: March (modification of 1986 agreement) Côte d’lvoire: April2,3 Guinea: April Togo: May Poland: July Yugoslavia: September2 Malawi: October Brazil: November2 | |||||||||||||
1989 | |||||||||||||
Nigeria: April Zaïre: June (deferment) Poland: June (deferment)3 South Africa: October Honduras: August3 Niger: October3 Trinidad and Tobago: December | |||||||||||||
1990 | |||||||||||||
Philippines: February2 Mexico: February2 Madagascar: April Bulgaria: April (standstill)3 Costa Rica: May Jamaica: June Morocco: September Senegal: September Chile: December (amendments to previous agreements) Venezuela: December2 | |||||||||||||
1991 | |||||||||||||
Colombia: April5 Niger: April Uruguay: January2 Brazil: May6 U.S.S.R., former: December (deferment) Mozambique: December Nigeria: December | |||||||||||||
1992 | |||||||||||||
Algeria: March Gabon: May Philippines: July2 Guyana: November Argentina: December | |||||||||||||
1993 | |||||||||||||
Uganda: February Bolivia: March Russia: July3 South Africa: September Brazil: November2 Jordan: December | |||||||||||||
1994 | |||||||||||||
Dominican Republic: February Gabon: May Bulgaria: June Zambia: July Poland: September2 Ecuador: October | |||||||||||||
Under negotiation
|
Agreement either signed or reached in principle (if signature has not yet taken place); not all signed agreements have become effective.
The restructuring agreement includes new financing.
Agreed in principle or tentative agreement with banks’ Steering Committees.
Refinancing agreement.
A separate club deal for new financing was arranged at the same time.
Preliminary agreement on interest arrears.
Amounts of Medium- and Long-Term Bank Debt Restructured1
(In millions of U.S. dollars; by year of agreement in principle)
Including short-term debt converted into long-term debt and debt exchanges involving interest or principal reduction. Amounts represent face value of old claims restructured; includes past due interest where applicable.
Multiyear rescheduling agreement (MYRA) entailing the restructuring of all eligible debt outstanding as of a certain date.
Financing packages involving debt and debt-service reduction.
Excludes past due interest.
Excluding $9.6 billion in deferments corresponding to maturities due in 1986.
Amendments to previous restructuring agreements.
Estimates of eligible debt.
Deferment agreement.
Face value of debt extinguished in buy-back.
Agreements in 1985 and 1987 modified debt-service profiles on debt rescheduled under the 1984 agreements; the amounts involved are not shown because repayments made during 1985–87 have not been identified.
Amounts of Medium- and Long-Term Bank Debt Restructured1
(In millions of U.S. dollars; by year of agreement in principle)
First Half | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | ||||||||||
Argentina | — | 29,500 | 2 | — | — | — | — | 27,980 | 3 | — | — | |||||||
Bolivia | — | 473 | 3,4 | — | — | — | — | 170 | 3,4 | — | — | |||||||
Brazil | 6,671 | 5 | — | 61,000 | 2 | — | — | 7,100 | 46,600 | 3 | — | — | ||||||
Bulgaria | — | — | — | — | — | — | — | 8,666 | — | |||||||||
Chile | 5,902 | 2 | — | — | 1,800 | 6 | — | — | — | — | ||||||||
Congo | 217 | — | — | — | — | — | — | — | — | |||||||||
Costa Rica | — | — | — | 1,570 | 3 | — | — | — | — | — | ||||||||
Côte d’lvoire | 691 | 2 | — | 2,211 | 2 | — | — | — | — | — | — | |||||||
Dominican Republic | — | — | — | — | — | — | — | 1,100 | 3,7 | — | ||||||||
Ecuador | — | — | — | — | — | — | — | — | 7,117 | 7 | ||||||||
Gabon | — | 39 | — | — | — | 157 | — | — | 150 | 7 | ||||||||
Gambia, The | — | 19 | — | — | — | — | — | — | — | |||||||||
Guinea | — | 43 | — | — | — | — | — | — | — | |||||||||
Guyana | (57) | 8 | — | — | — | — | — | 93 | 9 | — | — | |||||||
Honduras | — | 248 | 2 | — | 132 | 2 | — | — | — | — | ||||||||
Jamaica | — | 285 | 2 | — | — | 332 | — | — | — | — | ||||||||
Jordan | — | — | — | — | — | — | — | 857 | 3 | — | ||||||||
Madagascar | — | … | 10 | — | — | 21 | — | — | — | — | ||||||||
Malawi | — | — | 35 | 2 | — | — | — | — | — | — | ||||||||
Mexico | 43,700 | 2 | — | 3,671 | 3 | 48,231 | 3 | — | — | — | — | — | ||||||
Morocco | 2,174 | — | — | — | 3,150 | — | — | — | — | |||||||||
Mozambique | — | 253 | 2 | — | — | — | 124 | 4,9 | — | — | — | |||||||
Nicaragua | — | — | — | — | — | — | — | — | — | |||||||||
Niger | 52 | — | — | — | — | 111 | 4,9 | — | — | — | ||||||||
Nigeria | 4,250 | — | 5,824 | 2 | — | — | 5,811 | 9 | — | — | — | |||||||
Panama | — | — | — | — | — | — | — | — | — | |||||||||
Peru | — | — | — | — | — | — | — | — | — | |||||||||
Philippines | — | 9,010 | 2 | — | 781 | 1,339 | 9 | 4,473 | 3 | — | — | — | ||||||
Poland | 1,970 | 8,411 | 2 | — | (351) | 8 | — | — | — | — | 12,669 | 7 | ||||||
Romania | 800 | — | — | — | — | — | — | — | — | |||||||||
Russia | — | — | — | — | — | — | — | 24,000 | 7 | — | ||||||||
Senegal | — | — | — | — | 37 | — | — | — | — | |||||||||
Sierra Leone | — | — | — | — | — | — | — | — | — | |||||||||
South Africa | (13,600) | 8 | 11,900 | 2 | — | 8,000 | — | — | — | 5,000 | — | |||||||
Sudan | — | — | — | — | — | — | — | — | — | |||||||||
Togo | — | — | 49 | 2 | — | — | — | — | — | — | ||||||||
Trinidad and Tobago | — | — | 470 | 2 | — | — | — | — | — | — | ||||||||
Uganda | — | — | — | — | — | — | — | 153 | 4,9 | — | ||||||||
Uruguay | — | 1,770 | 2 | — | — | 1,608 | 3 | — | — | — | — | |||||||
Venezuela | — | 20,338 | 2 | — | — | 19,700 | 3 | — | — | — | — | |||||||
Yugoslavia | — | — | 6,895 | 2 | — | — | — | — | — | — | ||||||||
Zaïre | (65) | 8 | (61) | 8 | — | (61) | 8 | — | — | — | — | — | ||||||
Zambia | — | — | — | — | — | — | — | — | 414 | 7 | ||||||||
Total9 | 60,525 | 87,221 | 80,155 | 50,714 | 27,987 | 17,776 | 74,843 | 40,276 | 20,350 |
Including short-term debt converted into long-term debt and debt exchanges involving interest or principal reduction. Amounts represent face value of old claims restructured; includes past due interest where applicable.
Multiyear rescheduling agreement (MYRA) entailing the restructuring of all eligible debt outstanding as of a certain date.
Financing packages involving debt and debt-service reduction.
Excludes past due interest.
Excluding $9.6 billion in deferments corresponding to maturities due in 1986.
Amendments to previous restructuring agreements.
Estimates of eligible debt.
Deferment agreement.
Face value of debt extinguished in buy-back.
Agreements in 1985 and 1987 modified debt-service profiles on debt rescheduled under the 1984 agreements; the amounts involved are not shown because repayments made during 1985–87 have not been identified.
Amounts of Medium- and Long-Term Bank Debt Restructured1
(In millions of U.S. dollars; by year of agreement in principle)
First Half | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | ||||||||||
Argentina | — | 29,500 | 2 | — | — | — | — | 27,980 | 3 | — | — | |||||||
Bolivia | — | 473 | 3,4 | — | — | — | — | 170 | 3,4 | — | — | |||||||
Brazil | 6,671 | 5 | — | 61,000 | 2 | — | — | 7,100 | 46,600 | 3 | — | — | ||||||
Bulgaria | — | — | — | — | — | — | — | 8,666 | — | |||||||||
Chile | 5,902 | 2 | — | — | 1,800 | 6 | — | — | — | — | ||||||||
Congo | 217 | — | — | — | — | — | — | — | — | |||||||||
Costa Rica | — | — | — | 1,570 | 3 | — | — | — | — | — | ||||||||
Côte d’lvoire | 691 | 2 | — | 2,211 | 2 | — | — | — | — | — | — | |||||||
Dominican Republic | — | — | — | — | — | — | — | 1,100 | 3,7 | — | ||||||||
Ecuador | — | — | — | — | — | — | — | — | 7,117 | 7 | ||||||||
Gabon | — | 39 | — | — | — | 157 | — | — | 150 | 7 | ||||||||
Gambia, The | — | 19 | — | — | — | — | — | — | — | |||||||||
Guinea | — | 43 | — | — | — | — | — | — | — | |||||||||
Guyana | (57) | 8 | — | — | — | — | — | 93 | 9 | — | — | |||||||
Honduras | — | 248 | 2 | — | 132 | 2 | — | — | — | — | ||||||||
Jamaica | — | 285 | 2 | — | — | 332 | — | — | — | — | ||||||||
Jordan | — | — | — | — | — | — | — | 857 | 3 | — | ||||||||
Madagascar | — | … | 10 | — | — | 21 | — | — | — | — | ||||||||
Malawi | — | — | 35 | 2 | — | — | — | — | — | — | ||||||||
Mexico | 43,700 | 2 | — | 3,671 | 3 | 48,231 | 3 | — | — | — | — | — | ||||||
Morocco | 2,174 | — | — | — | 3,150 | — | — | — | — | |||||||||
Mozambique | — | 253 | 2 | — | — | — | 124 | 4,9 | — | — | — | |||||||
Nicaragua | — | — | — | — | — | — | — | — | — | |||||||||
Niger | 52 | — | — | — | — | 111 | 4,9 | — | — | — | ||||||||
Nigeria | 4,250 | — | 5,824 | 2 | — | — | 5,811 | 9 | — | — | — | |||||||
Panama | — | — | — | — | — | — | — | — | — | |||||||||
Peru | — | — | — | — | — | — | — | — | — | |||||||||
Philippines | — | 9,010 | 2 | — | 781 | 1,339 | 9 | 4,473 | 3 | — | — | — | ||||||
Poland | 1,970 | 8,411 | 2 | — | (351) | 8 | — | — | — | — | 12,669 | 7 | ||||||
Romania | 800 | — | — | — | — | — | — | — | — | |||||||||
Russia | — | — | — | — | — | — | — | 24,000 | 7 | — | ||||||||
Senegal | — | — | — | — | 37 | — | — | — | — | |||||||||
Sierra Leone | — | — | — | — | — | — | — | — | — | |||||||||
South Africa | (13,600) | 8 | 11,900 | 2 | — | 8,000 | — | — | — | 5,000 | — | |||||||
Sudan | — | — | — | — | — | — | — | — | — | |||||||||
Togo | — | — | 49 | 2 | — | — | — | — | — | — | ||||||||
Trinidad and Tobago | — | — | 470 | 2 | — | — | — | — | — | — | ||||||||
Uganda | — | — | — | — | — | — | — | 153 | 4,9 | — | ||||||||
Uruguay | — | 1,770 | 2 | — | — | 1,608 | 3 | — | — | — | — | |||||||
Venezuela | — | 20,338 | 2 | — | — | 19,700 | 3 | — | — | — | — | |||||||
Yugoslavia | — | — | 6,895 | 2 | — | — | — | — | — | — | ||||||||
Zaïre | (65) | 8 | (61) | 8 | — | (61) | 8 | — | — | — | — | — | ||||||
Zambia | — | — | — | — | — | — | — | — | 414 | 7 | ||||||||
Total9 | 60,525 | 87,221 | 80,155 | 50,714 | 27,987 | 17,776 | 74,843 | 40,276 | 20,350 |
Including short-term debt converted into long-term debt and debt exchanges involving interest or principal reduction. Amounts represent face value of old claims restructured; includes past due interest where applicable.
Multiyear rescheduling agreement (MYRA) entailing the restructuring of all eligible debt outstanding as of a certain date.
Financing packages involving debt and debt-service reduction.
Excludes past due interest.
Excluding $9.6 billion in deferments corresponding to maturities due in 1986.
Amendments to previous restructuring agreements.
Estimates of eligible debt.
Deferment agreement.
Face value of debt extinguished in buy-back.
Agreements in 1985 and 1987 modified debt-service profiles on debt rescheduled under the 1984 agreements; the amounts involved are not shown because repayments made during 1985–87 have not been identified.
Terms and Conditions of Bank Debt Restructurings and Financial Packages, 1989–July 19941
Arrangements approved in principle before January 1, 1989 are reported in previous background papers.
Voluntary amortization payments made during the grace period would be matched on a 1:1 basis by debt forgiveness (equivalent to a buy-back option at 50 cents on the dollar).
Interest rate would be increased by a maximum of 3 percentage points if GDP growth exceeds a threshold rate.
Seventy percent of these arrears were forgiven in 1990 upon down-payment equal to 5 percent of these arrears. Beginning at the end of 1990 and provided that Honduras remained current on interest due on all rescheduled amounts under the agreement, the creditor bank would further forgive interest arrears by a yearly amount equal to 5 percent of the arrears outstanding at the end of October 1989.
New money options include medium-term loan, new money bonds, on-lending facility, and medium-term trade facility. As of the end of March 1992, $952 million had been disbursed.
Includes $112 million of previously capitalized interest arrears on letters of credit.
Allowance for re-lending for up to 366 days of up to 20 percent of the new money on a revolving basis, of which one half would be available in any one calendar year and one half would be available to the private sector.
Committed to the new money option at the end of June 1992, with 95 percent of eligible debt tendered under the package.
Payment was to be deferred until December 30, 1991. Alternatively, banks would receive payments according to the original schedule in return for an equal increase in the short-term revolving trade facility.
Payment was deferred until the second quarter of 1990.
The interest rate of LIBOR plus ⅞ applies to the new money bonds issued by the central bank (as opposed to bonds issued by Venezuela).
Terms and Conditions of Bank Debt Restructurings and Financial Packages, 1989–July 19941
Country, Date of Agreement, and Type of Debt Rescheduled | Basis | Amount Provided | Grace Period | Maturity | Interest Rate | ||||
---|---|---|---|---|---|---|---|---|---|
(In millions of U.S. dollars) | (In years, unless otherwise noted) | (In percent spread over LIBOR/U.S. prime, unless otherwise noted) | |||||||
Argentina | |||||||||
Preliminary agreement on April 7, 1992; term sheet June 23, 1992; final agreement December 6, 1992 and closing of agreement for principal on April 7, 1993 | |||||||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Bolivia | |||||||||
Agreement in principle of April 1992; term sheet July 10, 1992; final agreement March 30, 1993 and closing of agreement on May 19, 1993 | |||||||||
Waiver to allow debt buy-back and exchanges | Debt reduction (see Table A4) | ||||||||
Brazil | |||||||||
Preliminary agreement on July 8, 1992; term sheet September 22, 1992; final agreement November 29, 1993 and closing of agreement April 15, 1994 | Old debt (equal to 5.5 times the new money provided) to be exchanged at par for new noncollateralized bonds. | … | 7 | 15 | ⅞ | ||||
New money bonds | |||||||||
Restructuring loan | Difference between interest rate in years 1–6 and LIBOR plus ![]() | … | 10 | 20 | Years 1–2: 4 percent Years 3–4: 4.5 percent Years 5–6: 5 percent Years 7–20: ![]() | ||||
Capitalization bond | Difference between interest rate in years 1–6 and 8 percent to be capitalized. Back-loaded amortization schedule. | … | 10 | 20 | Years 1–2: 4 percent Years 3–4: 4.5 percent Years 5–6: 5 percent Years 7–20: 8 percent | ||||
Collateralized debt exchanges | Debt reduction (see Table A4) | ||||||||
Bulgaria | |||||||||
Agreement in principle on November 24, 1993; term sheet March 11, 1994; final agreement on June 29, 1994 | |||||||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Costa Rica | |||||||||
Preliminary agreement on November 16, 1989; final agreement on May 21,1990 | Debt reduction (see Table A4) | ||||||||
Dominican Republic | |||||||||
Preliminary agreement on May 3, 1993; term sheet August 6, 1993; final agreement on February 14, 1994 | |||||||||
Collateralized debt exchange | Debt reduction (Table A4) | ||||||||
Ecuador | |||||||||
Agreement in principle on May 2, 1994; term sheet June 14, 1994 | |||||||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Gabon | |||||||||
Agreement in principle on December 11, 1991; final agreement on May 12, 1992 | |||||||||
Rescheduling of principal due January 1, 1989–December 31, 1992 | 100 percent of principal | 157 | 3 | 13 | ⅞ | ||||
Guyana | |||||||||
Agreement on term sheet on August 27, 1992; final agreement on November 24, 1992 | Debt reduction (see Table A4) | ||||||||
Honduras | |||||||||
Agreements of August 17, 1989 | |||||||||
Bilateral concessional rescheduling of debt to Lloyds Bank | |||||||||
Principal outstanding at end of October 1989 | 100 percent | 462 | 7 | 20 | 6.25 percent fixed rate3 | ||||
Interest arrears at end of October 1989 | 100 percent | 222,4 | 7 | 20 | 6.25 percent fixed rate3 | ||||
Bilateral concessional rescheduling of debt to Bank of America | |||||||||
Principal outstanding | 100 percent | 472 | 10 | 20 | 6.5 percent | ||||
Interest arrears as of end of October 1989 | 100 percent | 174 | ⅔ | 20 | 4 percent fixed rate | ||||
Jamaica | |||||||||
Agreement on June 26, 1990 | |||||||||
Refinancing of debt previously rescheduled in 1987 | |||||||||
Tranche A | 100 percent of principal | 144 | — | 10 ½ | ![]() | ||||
Tranche B | 100 percent of principal | 188 | 8 | 14 ½ | ![]() | ||||
Jordan | |||||||||
Agreement in principle on November 20, 1989 | |||||||||
Restructuring of medium- term loans maturing between January 1, 1989–June 30, 1991 | 100 percent of principal | 580 | 5 | 11 ½ | ![]() | ||||
New medium-term money facility | New money | 50 | 3 | 3 | ![]() | ||||
Preliminary agreement on June 30, 1993; term sheet August 20, 1993; final agreement | |||||||||
December 10, 1993 and closing of agreement | |||||||||
December 23, 1993 | |||||||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Madagascar | |||||||||
Agreement in principle in October 1989 and signed on April 10, 1990 | |||||||||
Rescheduling | 100 percent of principal falling due on December 15, 1989 and 50 percent of principal falling due in 1990–93 | 21.1 | 3 ½ | 9 | ⅞–1 | ||||
Mexico | |||||||||
Agreement on February 4, 1990 | |||||||||
New money facility | New money | 1,0905 | 7 | 15 | ![]() | ||||
Collateralized debt exchanges | Debt reduction (see Table A4) | ||||||||
Restructuring of maturities of eligible debt not subject to debt and debt-service reduction | 100 percent of principal | 6,400 | 7 | 15 | ![]() | ||||
Morocco | |||||||||
Agreement in principle of April 1990; final agreement of September 1990 | |||||||||
Restructuring of the entire debt outstanding at end of 1989 | 100 percent of pre-cutoff debt | 3,150 | 7–10 | 15–20 | ![]() | ||||
Debt buy-backs authorized | |||||||||
Mozambique | |||||||||
Agreement in principle on November 1, 1991; operation completed December 27, 1991 | |||||||||
Waivers to allow debt buy-back | Debt reduction (see Table A4) | ||||||||
Niger | |||||||||
Agreement in principle on January 14, 1991; operation completed March 8, 1991 | |||||||||
Waivers to allow debt buy-back | Debt reduction (see Table A4) | ||||||||
Nigeria | |||||||||
Agreement in principle of September 1988; final agreement of April 1989 | |||||||||
Restructuring of debt outstanding at end of 1987 | |||||||||
Not previously rescheduled medium-term debt | 100 percent of principal | 1,256 | 3 | 20 | ⅞ | ||||
Debt covered by the November 1987 rescheduling agreement | 100 percent of principal | 1,635 | 3 | 20 | ⅞ | ||||
Debt (letters of credit) covered by the November 1987 refinancing agreement | Arrears on interest, fees, and commissions on letters of credit | 2,448 | 3 | 15 | ![]() | ||||
100 percent | 4906 | — | 3 | Non-interest-bearing | |||||
Agreement in principle of March 1991;final agreement December 20, 1991 and closing of agreement on January 21, 1992 | |||||||||
New money bond exchange | Banks would provide new money in an amount equivalent to 20 percent of debts exchanged for noncollateralized new bonds. | — | 7 | 15 | 1 | ||||
Buy-back and debt exchange | Debt reduction (see Table A4) | ||||||||
Philippines | |||||||||
Agreement in principle of October 1989; final agreement of February 1990: | |||||||||
New money bonds or loans7 | New money | 710 | 8 | 15 | ![]() | ||||
Rescheduling of maturities falling due in 1990–93 | 100 percent of principal | 781 | 8 | 15 | ![]() | ||||
Change in spread on previously restructured debt | — | Unchanged | ![]() | ||||||
Waivers to allow debt buy-backs and exchanges | Debt reduction (see Table A4) | ||||||||
Preliminary agreement of August 1991; term sheet February 1992, final agreement July 24, 1992 and closing of agreement on December 1, 1992 | |||||||||
New money bonds | Old debt (equal to four times the new money provided) to be exchanged at par bond for new noncollateralized bonds | 1398 | 5 | 17 | ![]() | ||||
Collateralized debt exchanges | Debt reduction (see Table A4) | ||||||||
Poland | |||||||||
Agreement in principle of June 16, 1989 | |||||||||
Deferment of amortization payments falling due between May 1989 and December 19909 | 100 percent | 206 | … | … | Unchanged | ||||
Agreement in principle of October 1989 | |||||||||
Rescheduling of interest falling due in the fourth quarter of 198910 | 85 percent | 145 | … | … | |||||
Agreement in principle on March 10, 1994; term sheet May 23, 1994 | |||||||||
New money bonds | New money bonds to be provided corresponding to 35 percent of debt allocated to debt conversion bonds (see Table A4) | … | 10 | 15 | ![]() | ||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Russia | |||||||||
Agreement in principle of July 30, 1993 | 100 percent of principal | 24,000 | 5 | 15 | … | ||||
Rescheduling of existing stock of debt and interest arrears | 100 percent of interest arrears after cash payments of $500 million | 3,000 | 5 | 10 | … | ||||
Senegal | |||||||||
Agreement of September 1990 | 37 | — | 9 | ⅞ | |||||
South Africa | |||||||||
Debt arrangement of September 27, 1993 | 100 percent of principal | 5,000 | ½ | 8 | 1 ⅛ | ||||
Rescheduling of short and medium-term debt subject to September 1985 standstill and falling due at expiration of third interim arrangement | |||||||||
Trinidad and Tobago | |||||||||
Agreement in principle of November 1988; final agreement December 1989 | |||||||||
Medium- and long-term maturities falling due September 1, 1988–August 31, 1992 | 100 percent of principal | 446 | 12 ½ | ![]() | |||||
Uganda | |||||||||
Final agreement: February 26, 1993 | Debt reduction (Table A4) | ||||||||
Uruguay | |||||||||
Agreement in principle of November 1990; final agreement January 1991 | |||||||||
New Money Bond Exchange | 20 percent increase in exposure via purchase of new bonds would entitle banks to exchange at par old debt for noncollateralized “debt-conversion notes.” | 89 | 7 | 15 | 1.0 | ||||
Buy-back and debt exchange | Debt reduction (see Table A4) | ||||||||
Venezuela | |||||||||
Agreement in principle on March 20, 1990; final term sheet of June 25, 1990; final agreement on December 5, 1990 | |||||||||
New money bond exchange | Old debt (equal to five times the new money provided) to be exchanged at par for new, noncollateralized bonds. | 1,197 | 7 | 15 | 1 and ⅞11 | ||||
Collateralized debt exchanges | Debt reduction (see Table A4) | ||||||||
Zambia | |||||||||
Agreement in principle, July 1, 1994 | Debt reduction (see Table A4) |
Arrangements approved in principle before January 1, 1989 are reported in previous background papers.
Voluntary amortization payments made during the grace period would be matched on a 1:1 basis by debt forgiveness (equivalent to a buy-back option at 50 cents on the dollar).
Interest rate would be increased by a maximum of 3 percentage points if GDP growth exceeds a threshold rate.
Seventy percent of these arrears were forgiven in 1990 upon down-payment equal to 5 percent of these arrears. Beginning at the end of 1990 and provided that Honduras remained current on interest due on all rescheduled amounts under the agreement, the creditor bank would further forgive interest arrears by a yearly amount equal to 5 percent of the arrears outstanding at the end of October 1989.
New money options include medium-term loan, new money bonds, on-lending facility, and medium-term trade facility. As of the end of March 1992, $952 million had been disbursed.
Includes $112 million of previously capitalized interest arrears on letters of credit.
Allowance for re-lending for up to 366 days of up to 20 percent of the new money on a revolving basis, of which one half would be available in any one calendar year and one half would be available to the private sector.
Committed to the new money option at the end of June 1992, with 95 percent of eligible debt tendered under the package.
Payment was to be deferred until December 30, 1991. Alternatively, banks would receive payments according to the original schedule in return for an equal increase in the short-term revolving trade facility.
Payment was deferred until the second quarter of 1990.
The interest rate of LIBOR plus ⅞ applies to the new money bonds issued by the central bank (as opposed to bonds issued by Venezuela).
Terms and Conditions of Bank Debt Restructurings and Financial Packages, 1989–July 19941
Country, Date of Agreement, and Type of Debt Rescheduled | Basis | Amount Provided | Grace Period | Maturity | Interest Rate | ||||
---|---|---|---|---|---|---|---|---|---|
(In millions of U.S. dollars) | (In years, unless otherwise noted) | (In percent spread over LIBOR/U.S. prime, unless otherwise noted) | |||||||
Argentina | |||||||||
Preliminary agreement on April 7, 1992; term sheet June 23, 1992; final agreement December 6, 1992 and closing of agreement for principal on April 7, 1993 | |||||||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Bolivia | |||||||||
Agreement in principle of April 1992; term sheet July 10, 1992; final agreement March 30, 1993 and closing of agreement on May 19, 1993 | |||||||||
Waiver to allow debt buy-back and exchanges | Debt reduction (see Table A4) | ||||||||
Brazil | |||||||||
Preliminary agreement on July 8, 1992; term sheet September 22, 1992; final agreement November 29, 1993 and closing of agreement April 15, 1994 | Old debt (equal to 5.5 times the new money provided) to be exchanged at par for new noncollateralized bonds. | … | 7 | 15 | ⅞ | ||||
New money bonds | |||||||||
Restructuring loan | Difference between interest rate in years 1–6 and LIBOR plus ![]() | … | 10 | 20 | Years 1–2: 4 percent Years 3–4: 4.5 percent Years 5–6: 5 percent Years 7–20: ![]() | ||||
Capitalization bond | Difference between interest rate in years 1–6 and 8 percent to be capitalized. Back-loaded amortization schedule. | … | 10 | 20 | Years 1–2: 4 percent Years 3–4: 4.5 percent Years 5–6: 5 percent Years 7–20: 8 percent | ||||
Collateralized debt exchanges | Debt reduction (see Table A4) | ||||||||
Bulgaria | |||||||||
Agreement in principle on November 24, 1993; term sheet March 11, 1994; final agreement on June 29, 1994 | |||||||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Costa Rica | |||||||||
Preliminary agreement on November 16, 1989; final agreement on May 21,1990 | Debt reduction (see Table A4) | ||||||||
Dominican Republic | |||||||||
Preliminary agreement on May 3, 1993; term sheet August 6, 1993; final agreement on February 14, 1994 | |||||||||
Collateralized debt exchange | Debt reduction (Table A4) | ||||||||
Ecuador | |||||||||
Agreement in principle on May 2, 1994; term sheet June 14, 1994 | |||||||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Gabon | |||||||||
Agreement in principle on December 11, 1991; final agreement on May 12, 1992 | |||||||||
Rescheduling of principal due January 1, 1989–December 31, 1992 | 100 percent of principal | 157 | 3 | 13 | ⅞ | ||||
Guyana | |||||||||
Agreement on term sheet on August 27, 1992; final agreement on November 24, 1992 | Debt reduction (see Table A4) | ||||||||
Honduras | |||||||||
Agreements of August 17, 1989 | |||||||||
Bilateral concessional rescheduling of debt to Lloyds Bank | |||||||||
Principal outstanding at end of October 1989 | 100 percent | 462 | 7 | 20 | 6.25 percent fixed rate3 | ||||
Interest arrears at end of October 1989 | 100 percent | 222,4 | 7 | 20 | 6.25 percent fixed rate3 | ||||
Bilateral concessional rescheduling of debt to Bank of America | |||||||||
Principal outstanding | 100 percent | 472 | 10 | 20 | 6.5 percent | ||||
Interest arrears as of end of October 1989 | 100 percent | 174 | ⅔ | 20 | 4 percent fixed rate | ||||
Jamaica | |||||||||
Agreement on June 26, 1990 | |||||||||
Refinancing of debt previously rescheduled in 1987 | |||||||||
Tranche A | 100 percent of principal | 144 | — | 10 ½ | ![]() | ||||
Tranche B | 100 percent of principal | 188 | 8 | 14 ½ | ![]() | ||||
Jordan | |||||||||
Agreement in principle on November 20, 1989 | |||||||||
Restructuring of medium- term loans maturing between January 1, 1989–June 30, 1991 | 100 percent of principal | 580 | 5 | 11 ½ | ![]() | ||||
New medium-term money facility | New money | 50 | 3 | 3 | ![]() | ||||
Preliminary agreement on June 30, 1993; term sheet August 20, 1993; final agreement | |||||||||
December 10, 1993 and closing of agreement | |||||||||
December 23, 1993 | |||||||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Madagascar | |||||||||
Agreement in principle in October 1989 and signed on April 10, 1990 | |||||||||
Rescheduling | 100 percent of principal falling due on December 15, 1989 and 50 percent of principal falling due in 1990–93 | 21.1 | 3 ½ | 9 | ⅞–1 | ||||
Mexico | |||||||||
Agreement on February 4, 1990 | |||||||||
New money facility | New money | 1,0905 | 7 | 15 | ![]() | ||||
Collateralized debt exchanges | Debt reduction (see Table A4) | ||||||||
Restructuring of maturities of eligible debt not subject to debt and debt-service reduction | 100 percent of principal | 6,400 | 7 | 15 | ![]() | ||||
Morocco | |||||||||
Agreement in principle of April 1990; final agreement of September 1990 | |||||||||
Restructuring of the entire debt outstanding at end of 1989 | 100 percent of pre-cutoff debt | 3,150 | 7–10 | 15–20 | ![]() | ||||
Debt buy-backs authorized | |||||||||
Mozambique | |||||||||
Agreement in principle on November 1, 1991; operation completed December 27, 1991 | |||||||||
Waivers to allow debt buy-back | Debt reduction (see Table A4) | ||||||||
Niger | |||||||||
Agreement in principle on January 14, 1991; operation completed March 8, 1991 | |||||||||
Waivers to allow debt buy-back | Debt reduction (see Table A4) | ||||||||
Nigeria | |||||||||
Agreement in principle of September 1988; final agreement of April 1989 | |||||||||
Restructuring of debt outstanding at end of 1987 | |||||||||
Not previously rescheduled medium-term debt | 100 percent of principal | 1,256 | 3 | 20 | ⅞ | ||||
Debt covered by the November 1987 rescheduling agreement | 100 percent of principal | 1,635 | 3 | 20 | ⅞ | ||||
Debt (letters of credit) covered by the November 1987 refinancing agreement | Arrears on interest, fees, and commissions on letters of credit | 2,448 | 3 | 15 | ![]() | ||||
100 percent | 4906 | — | 3 | Non-interest-bearing | |||||
Agreement in principle of March 1991;final agreement December 20, 1991 and closing of agreement on January 21, 1992 | |||||||||
New money bond exchange | Banks would provide new money in an amount equivalent to 20 percent of debts exchanged for noncollateralized new bonds. | — | 7 | 15 | 1 | ||||
Buy-back and debt exchange | Debt reduction (see Table A4) | ||||||||
Philippines | |||||||||
Agreement in principle of October 1989; final agreement of February 1990: | |||||||||
New money bonds or loans7 | New money | 710 | 8 | 15 | ![]() | ||||
Rescheduling of maturities falling due in 1990–93 | 100 percent of principal | 781 | 8 | 15 | ![]() | ||||
Change in spread on previously restructured debt | — | Unchanged | ![]() | ||||||
Waivers to allow debt buy-backs and exchanges | Debt reduction (see Table A4) | ||||||||
Preliminary agreement of August 1991; term sheet February 1992, final agreement July 24, 1992 and closing of agreement on December 1, 1992 | |||||||||
New money bonds | Old debt (equal to four times the new money provided) to be exchanged at par bond for new noncollateralized bonds | 1398 | 5 | 17 | ![]() | ||||
Collateralized debt exchanges | Debt reduction (see Table A4) | ||||||||
Poland | |||||||||
Agreement in principle of June 16, 1989 | |||||||||
Deferment of amortization payments falling due between May 1989 and December 19909 | 100 percent | 206 | … | … | Unchanged | ||||
Agreement in principle of October 1989 | |||||||||
Rescheduling of interest falling due in the fourth quarter of 198910 | 85 percent | 145 | … | … | |||||
Agreement in principle on March 10, 1994; term sheet May 23, 1994 | |||||||||
New money bonds | New money bonds to be provided corresponding to 35 percent of debt allocated to debt conversion bonds (see Table A4) | … | 10 | 15 | ![]() | ||||
Collateralized debt exchange | Debt reduction (see Table A4) | ||||||||
Russia | |||||||||
Agreement in principle of July 30, 1993 | 100 percent of principal | 24,000 | 5 | 15 | … | ||||
Rescheduling of existing stock of debt and interest arrears | 100 percent of interest arrears after cash payments of $500 million | 3,000 | 5 | 10 | … | ||||
Senegal | |||||||||
Agreement of September 1990 | 37 | — | 9 | ⅞ | |||||
South Africa | |||||||||
Debt arrangement of September 27, 1993 | 100 percent of principal | 5,000 | ½ | 8 | 1 ⅛ | ||||
Rescheduling of short and medium-term debt subject to September 1985 standstill and falling due at expiration of third interim arrangement | |||||||||
Trinidad and Tobago | |||||||||
Agreement in principle of November 1988; final agreement December 1989 | |||||||||
Medium- and long-term maturities falling due September 1, 1988–August 31, 1992 | 100 percent of principal | 446 | 12 ½ | ![]() | |||||
Uganda | |||||||||
Final agreement: February 26, 1993 | Debt reduction (Table A4) | ||||||||
Uruguay | |||||||||
Agreement in principle of November 1990; final agreement January 1991 | |||||||||
New Money Bond Exchange | 20 percent increase in exposure via purchase of new bonds would entitle banks to exchange at par old debt for noncollateralized “debt-conversion notes.” | 89 | 7 | 15 | 1.0 | ||||
Buy-back and debt exchange | Debt reduction (see Table A4) | ||||||||
Venezuela | |||||||||
Agreement in principle on March 20, 1990; final term sheet of June 25, 1990; final agreement on December 5, 1990 | |||||||||
New money bond exchange | Old debt (equal to five times the new money provided) to be exchanged at par for new, noncollateralized bonds. | 1,197 | 7 | 15 | 1 and ⅞11 | ||||
Collateralized debt exchanges | Debt reduction (see Table A4) | ||||||||
Zambia | |||||||||
Agreement in principle, July 1, 1994 | Debt reduction (see Table A4) |
Arrangements approved in principle before January 1, 1989 are reported in previous background papers.
Voluntary amortization payments made during the grace period would be matched on a 1:1 basis by debt forgiveness (equivalent to a buy-back option at 50 cents on the dollar).
Interest rate would be increased by a maximum of 3 percentage points if GDP growth exceeds a threshold rate.
Seventy percent of these arrears were forgiven in 1990 upon down-payment equal to 5 percent of these arrears. Beginning at the end of 1990 and provided that Honduras remained current on interest due on all rescheduled amounts under the agreement, the creditor bank would further forgive interest arrears by a yearly amount equal to 5 percent of the arrears outstanding at the end of October 1989.
New money options include medium-term loan, new money bonds, on-lending facility, and medium-term trade facility. As of the end of March 1992, $952 million had been disbursed.
Includes $112 million of previously capitalized interest arrears on letters of credit.
Allowance for re-lending for up to 366 days of up to 20 percent of the new money on a revolving basis, of which one half would be available in any one calendar year and one half would be available to the private sector.
Committed to the new money option at the end of June 1992, with 95 percent of eligible debt tendered under the package.
Payment was to be deferred until December 30, 1991. Alternatively, banks would receive payments according to the original schedule in return for an equal increase in the short-term revolving trade facility.
Payment was deferred until the second quarter of 1990.
The interest rate of LIBOR plus ⅞ applies to the new money bonds issued by the central bank (as opposed to bonds issued by Venezuela).
Debt and Debt-Service Reduction in Commercial Bank Agreements, 1987–July 19941
(By year of agreement in principle)
Excludes $700 million in downpayment on past due interest.
Excludes $64 million in downpayment on past due interest.
Excludes $29 million in downpayment on past due interest.
Excludes $75 million in interest equalization payments.
Excludes $29 million in downpayment on past due interest.
Includes $2,447 million of debt of domestic commercial banks, for which no enhancements were provided (the Gurria bonds).
Excludes $373 million of cash payments to clear all interest arrears.
Excludes $158 million in catch-up and downpayment on past due interest.
Debt and Debt-Service Reduction in Commercial Bank Agreements, 1987–July 19941
(By year of agreement in principle)
Face Value of Debt to Commercial Banks | Resources Used | Terms | Enhancements for New Instruments | Special Features | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Retired | Issued | |||||||||
(In millions of U.S. dollars) | ||||||||||
Argentina (1987) | ||||||||||
Noncollateralized debt exchange with interest reduction | 15 | 15 | — | Old claims exchanged at par for new exit bonds with a 25-year maturity (12 years’ grace) and 4 percent fixed rate. | — | New bonds excluded from future new money base. | ||||
Argentina (1992) | ![]() | |||||||||
Principal reduction | 6,663 | 4,331 | 3,0591 (including resources from IMF, World Bank, Inter-American Development Bank, Eximbank Japan, and Argentina’s own resources) | Old claims exchanged for new bonds, with a 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 12-month rolling interest guarantee based on 8 percent rate. | ![]() | Part of past due interest settled at closing date (through cash payments of $700 million). The balance refinanced (3 years’ grace) bearing interest of LIBOR plus ![]() Interest due reduced to respective monthly LIBOR through end of 1991, and to 4 percent thereafter. Bonds eligible for debt conversion. | |||
Interest reduction | 12,734 | 12,734 | Old claims exchanged at par for new bonds with a 30-year bullet maturity and interest increasing gradually from 4 percent in year one, to 6 percent in year seven, and remaining at that level until maturity. | Principal fully collateralized and 12-month rolling interest guarantee based on 6 percent rate. | ||||||
Bolivia (1987) | ||||||||||
Cash buy-back | 253 | — | 28 (bilateral donations) | At preannounced price of 11 cents on the dollar. | — | — | ||||
Collateralized debt exchange with principal reduction | 204 | 22 | 7 (bilateral donations) | Old claims exchanged for new zero-coupon 25-year bond carrying 9.25 percent yield at a preannounced exchange ratio of 1:0.11. | Principal and interest fully collateralized. | Past due interest canceled under all options. New bonds eligible for debt conversion. | ||||
Debt forgiveness | 16 | — | — | — | — | Includes $0.6 million of debt-for-nature swap. | ||||
Bolivia (1992) | ||||||||||
Cash buy-back | 78 | — | ![]() | 27 (including resources from IDA debt-reduction facility and grants from the United States, Sweden, Switzerland, and the Netherlands) | At preannounced price of 16 cents on the dollar. | — | Past due interest canceled under all options. | |||
Interest reduction | 33 | 33 | Old claims exchanged at par for non-interest-bearing new bonds with a 30-year bullet maturity. | Principal fully collateralized. | Value recovery clause based on the world price of tin. Upon maturity, bonds exchanged into assets denominated in domestic currency at prenegotiated ratio of 1:1.5 for approved investment in special projects. | |||||
Principal reduction | 60 | 10 | Old claims exchanged for new short-term bonds at prenegotiated exchange ratio of 1:0.16 | — | ||||||
Brazil (1988) | ||||||||||
Noncollateralized debt exchange with interest reduction | 1,100 | 1,100 | — | Old claims exchanged at par for new exit bonds with a 25-year maturity (10 years’ grace) and 6 percent fixed rate. | — | New bonds excluded from future new money base. Eligible for debt-equity conversion program. | ||||
Brazil (1992) | ||||||||||
Principal reduction | 14,210 | 9,237 | ![]() | 2,800 (own resources and about 400 of new money). Additional 900 are to be delivered in the next two years. | Old claims exchanged for new bonds with a 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 12-month rolling interest guarantee. | ![]() | Cash payment of $2.0 billion paid during May-December 1991. The past due interest remaining at end of 1990 converted into a 10-year bond (3 years’ grace) at LIBOR plus ![]() | ||
Interest reduction | 12,992 | 12,992 | Old claim exchanged at par for new bonds with a 30-year bullet maturity and interest increasing gradually from 4 percent in year one, to 6 percent in year seven, and remaining at that level until maturity. | Principal fully collateralized and 12-month rolling interest guarantee. | Remaining past due interest accumulated in 1991 and 1992 is converted into 12-year bonds (3 years’ grace) at LIBOR plus ![]() | |||||
Temporary interest reduction | 2,030 | 2,030 | Old claim exchanged at par for new bonds with a 15-year maturity (9 years’ grace) and an interest rate of 4 percent in the years 1–2, 4.5 percent in years 3–4, 5 percent in years 5-6, and LIBOR plus ![]() | Twelve-month rolling interest guarantee for the first six years. | ||||||
Bulgaria (1993) | ![]() | |||||||||
Cash buy-back | 798 | — | 6522 (expected to come from IMF, World Bank, and own resources). | At preannounced price of 25.1875 cents on the dollar. | — | Buy-back price applies to principal and interest arrears separately. | ||||
Principal reduction | 3,730 | 1,865 | Old claims exchanged for new bonds, with a 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 12-month rolling interest. | ![]() | At closing, 3 percent of past due interest will be settled through cash payments. The balance will be refinanced as an uncollateralized 17-year bond (7 years’ grace) bearing interest of LIBOR plus ![]() | ||||
Temporary interest reduction | 1,658 | 1,658 | Old claims exchanged at par for new bonds with an 18-year maturity (7 years’ grace) and an interest rate of 2 percent in years 1-2, 2.25 percent in years 3-4, 2.5 percent in year 5, 2.75 percent in year 6, 3 percent in year 7, and LIBOR plus ![]() | Twelve-month rolling interest guarantee for the first seven years. | ||||||
Chile (1988) | ||||||||||
Cash buy-back | 439 | — | 248 (own resources) | $299 million bought back in November 1988 at average price of 56 cents on the dollar; $140 million bought back in November 1989 at average price of 58 cents on the dollar. Price determined in Dutch auction. | — | Resources used for buy-backs subject to aggregate limit of $500 million; debt to be extinguished subject to aggregate ceiling of $2 billion. | ||||
Costa Rica (1989) | ![]() | |||||||||
Cash buy-back | 991 | — | 1963 (from bilateral and multilateral sources and Costa Rica’s own reserves) | At preannounced price of 16 cents on the dollar. | — | Includes $223 million of past due interest. | ||||
Collateralized debt exchange with interest reduction | 290 | 290 | (a) Old debt exchanged at par for new 20-year bond (10 years’ grace) carrying 6.25 percent fixed, negotiated rate. (b) Past due interest, after 20 percent cash downpayment, exchanged at par for a new claim with a 15-year maturity (no grace period) and LIBOR plus ![]() (c) Old claims (including past due interest) exchanged at par for a new 25-year bond (15 years’ grace) carrying 6.25 percent fixed, negotiated rate. | (a) Eighteen-month interest guarantee (excess enhancement funds to be applied to increase coverage up to 18 months). (b) Thirty-six month interest guarantee. | (a) and (b) available only to banks tendering at least 60 percent of their exposure to the buy-back option. Value recovery clause linked to GDP growth. Converted past due interest equaled $53 million. (c) and (d) optional to banks tendering less than 60 percent of their exposure (including past due interest) to the buy-back option. Converted past due interest equaled $61 million. | |||||
Noncollateralized debt exchange with interest reduction | 289 | 289 | — | (a), (b), (c), and (d): new bonds eligible for debt-equity conversion program. | ||||||
(d) Past due interest, after a 20 percent cash downpayment, exchanged at par for a new claim with a 15-year maturity (no grace period) and LIBOR plus ![]() | Value recovery clause activated if GDP exceeds 1989 GDP by 120 percent in real terms. | |||||||||
Dominican Republic (1993) | ||||||||||
Cash buy-back | 272 | — | ![]() | 149 (own resources) | At preannounced price of 25 cents on the dollar. | — | Buy-back price applies to principal and interest arrears separately. | |||
Principal reduction | 505 | 328 | Old claims exchanged for new bonds with 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 9-month rolling interest guarantee (to be capitalized until 12 months). | At closing, 12.5 percent of remaining past due interest will be settled through cash payments. The balance will be refinanced as uncollateralized 15-year bonds (3 years’ grace) bearing interest of LIBOR plus ![]() | |||||
Temporary interest reduction | — | — | Old claims exchanged at par for new bonds with an 18-year maturity (9 years’ grace) with equal semiannual installments after grace and an interest rate of 3 percent in years 1–2, 3.5 percent in years 3–4, 4 percent in years 5–6, and LIBOR plus % from years 7 to 18. | — | Agreement included a “pull-back” clause if banks’ allocation does not yield at least 50 percent debt reduction. | |||||
Ecuador (1994) | ||||||||||
Principal reduction | 2,621 | 1,442 | ![]() | 5834 expected to come from IMF, World Bank, official sources, and own resources) | Old claims exchanged for new bonds with 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 12-month rolling interest guarantee based on 7 percent. | Part of past due interest settled before closing (through cash payment of $75 million). The balance will be refinanced as an uncollateralized 20-year bond (10 years’ grace) bearing interest of LIBOR plus ![]() | |||
Interest reduction | 1,898 | 1,898 | Old claims exchanged at par for new bonds with 30-year bullet maturity and interest increasing gradually from 3 percent in year 1 to 5 percent in year 11, and remaining at that level until maturity. | Principal fully collateralized and 12-month rolling interest guarantee at 3.75 percent (to be capitalized until it reaches 5 percent). | ||||||
Guyana (1992) | ![]() | |||||||||
Cash buy-back | 69 | — | 10 (fully financed by IDA debt-reduction facility) | At preannounced price of 14.5 cents on the dollar. | Excludes export credit debt. Buy-back price applied to principal, past due interest ($23.5 million) canceled. | |||||
Jordan (1993) | ![]() | 1185 (own resources) | ||||||||
Cash buy-back | — | — | At preannounced price of 39 cents on the dollar. | — | Buy-back price applies to principal and interest arrears separately. | |||||
Principal reduction | 243 | 158 | Old claims exchanged for new bonds with a 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 6-month rolling interest guarantee based on 8 percent. | At closing, 50 percent of past due interest associated with the discount exchange and 10 percent of past due interest associated with the par exchange will be settled through cash payments. The balance will be refinanced as uncollateralized 12-year bond (3 years’ grace) bearing interest of LIBOR plus ![]() | |||||
Interest reduction | 493 | 493 | Old claims exchanged at par for new bonds with a 30-year bullet maturity and interest increasing gradually starting at 4 percent in years 1–4, 5 percent in year 5, 5.5 percent in year 6 and 6 percent from years 7 to 30. | Principal fully collateralized and 6-month rolling interest guarantee based on 6 percent. | Interest due after March 1991 and until the closing date reduced to an interest rate of 4 percent. | |||||
Mexico (1988) | ||||||||||
Collateralized debt exchange with principal reduction | 3,671 | 2,556 | 555 (own resources) | Old claims exchanged for new bond with 20-year bullet maturity and LIBOR plus 1 ⅝; average exchange ratio 1:0.7 (determined in Dutch auction). | Principal fully collateralized. | New bonds excluded from future new money base. | ||||
Mexcio (1989) | ![]() | 7,122 (including resources from IMF and World Bank) | ||||||||
Collateralized debt exchange with principal reduction | 20,546 | 13,3546 | Old claims exchanged for new bond with 30-year bullet maturity and LIBOR plus ![]() | Principal fully collateralized and 18-month rolling interest guarantee | ![]() | Recovery clause in case real oil prices exceed threshold real price of $14 a barrel. New bonds excluded from future new money base and eligible for debt-equity conversion. | ||||
Interest reduction | 22,427 | 22,427 | Old claims exchanged at par for new bond with 30-year bullet maturity and 6.25 percent fixed, negotiated interest rate. | Same as above | ||||||
Mozambique (1991) | ||||||||||
Cash buy-back | 124 | — | 12 (including resources from IDA debt-reduction facility and French, Swiss, Swedish, and Dutch grants) | At a preannounced price of 10 cents on the dollar. | — | Buy-back price applied to principal, past due interest canceled. | ||||
Niger (1991) | ![]() | |||||||||
Principal reduction | 111 | — | 23 (including resources from IDA debt-reduction facility and French and Swiss grants) | Old claims exchanged for new 60-day notes with face value equivalent to 18 percent of outstanding face value of principal. | Principal fully guaranteed by BCEAO. | Buy-back price applied to principal, past due interest canceled. Operation has been structured as a novation, that is, the exchange of a new obligation for an old obligation to avoid seeking waivers from certain provisions in existing loan contracts. | ||||
Interest reduction | … | … | Old claims exchanged at par for 21-year non-interest-bearing notes. | Principal fully collateralized by zero coupon bonds purchased by the BCEAO. | — | |||||
Nigeria (1991) | ![]() | |||||||||
Cash buy-back | 3,390 | 1,356 | 1,7087 (own resources) | At preannounced price of 40 cents on the dollar. | All past due interest cleared prior to closing date. Recovery clause in the event that oil prices exceed threshold of $28 a barrel in 1996, adjusted for inflation thereafter. New bonds eligible for debt conversions. | |||||
Interest reduction | 2,048 | 2,048 | Old claims exchanged at par for new registered bonds with a 30-year bullet maturity and a fixed interest rate of 5.5 percent for 3 years and 6.25 percent thereafter. | Principal fully collateralized by U.S. Treasury bonds with a 12-month rolling interest guarantee, based on rate of 6.25 percent. | ||||||
Philippines (1989) | ||||||||||
Cash buy-back | 1,339 | — | 670 (including resources from IMF and World Bank). | At preannounced price of 50 cents on the dollar. | — | Included waiver for second round of buy-backs. | ||||
Philippines (1992) | ![]() | |||||||||
Cash buy-back | 1,263 | — | 1,125 (including resources from IMF, World Bank, Eximbank Japan, and the Philippines’ own resources) | At a preannounced price of 52 cents on the dollar. | — | — | ||||
Temporary interest reduction | 757 | 757 | Old claims exchanged at par for new bonds with 15-year maturity (7 years’ grace) and an interest rate of 4 percent in the first two years, 5 percent in years 3-5, 6 percent in year 6, and LIBOR plus ![]() | Twelve-month rolling interest guarantee based on a 6 percent annual rate for the first six years. | — | |||||
Principal collateralized interest reduction | 1,894 | 1,894 | Old claims exchanged at par for new bonds with a 25-year bullet maturity and an interest rate that gradually rises from 4.25 percent in the first year to 6.5 percent in the sixth year and remains at that level until maturity. | Principal fully collateralized and 14 months’ rolling interest guarantee based on a rate of 6.5 percent. | — | |||||
Poland (1994) | ||||||||||
Cash buy-back | 2,454 | — | ![]() | 1,8668 (expected to come from IMF, World Bank, official sources, and own resources) | At preannounced price of 41 cents on the dollar for medium-and long-term debt and 38 cents on the dollar for short-term debt. | — | — | |||
Principal reduction | 5,336 | 2,935 | Old claims exchanged for new bonds with a 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized; no interest collateral. | ||||||
Interest reduction | 1,743 | 1,743 | Old claims exchanged at par for new bonds with a 30-year bullet maturity and interest increasing gradually from 2.75 percent in year 1 to 5 percent from year 21 onward. | Principal fully collateralized; no interest collateral. | Separate par bonds with slightly different interest profile for medium- and long-term and short-term debt. Payment of 85 percent of interest due in December 1989 and 30 percent of interest due accruing from May 1993 expected before closing. The balance will be subject to debt-service reduction through an uncollateralized 20-year bond (7-years’ grace) bearing an interest rate gradually increasing from 3.25 percent in year 1 to 7 percent in year 9 and remaining at that level until maturity. Amortization payments are semiannual rising from 1 percent of the original face value in payments 1–3 to 2 percent in payments 4–6, to 3 percent in payments 7–17, to 5 percent in payments 18–23, to 7 percent in payments 24-27. | |||||
Noncollateralized debt exchange with interest reduction | 386 | 386 | Old claims exchanged at par for debt conversion bonds with 25-year maturity (20 years’ grace) and interest increasing gradually from 4.5 percent in year 1 to 7.5 percent from year 11 and remaining at that level until maturity. | — | ||||||
Uganda (1993) | ![]() | |||||||||
Cash buy-back | 153 | — | 18 (including resources from IDA debt-reduction facility and grants from the Netherlands, Switzerland, Germany, and the EC) | At preannounced price of 12 cents on the dollar. | Buy-back price applied to principal, past due interest canceled. | |||||
Uruguay (1991) | ![]() | |||||||||
Cash buy-back | 633 | — | 463 (including resources from the IDB) | At preannounced price of 56 cents on the dollar. | ||||||
Interest reduction | 530 | 530 | Old claims exchanged at par for new bonds with a 30-year bullet maturity and a fixed interest rate of 6.75 percent. | Principal fully collateralized and an 18-month rolling interest guarantee. | Value recovery clause allowing for larger payments in the event of a favorable performance of an index of Uruguay’s terms of trade. | |||||
Venezuela (1990) | ||||||||||
Collateralized debt exchanges | ![]() | 2,585 (including resources from IMF and World Bank) | ||||||||
Principal reduction | 1,411 | 647 | Old claims exchanged for new three-month notes with present value equal to 45 percent of face value of old claims. | Face value of notes fully collateralized by short-term U.S. Treasury securities. | ||||||
Principal reduction | 1,808 | 1,265 | Old claims exchanged for new bond with 30-year maturity and LIBOR plus ![]() | Principal fully collateralized and 14-month rolling interest guarantee. | ![]() | Eligible for debt-equity conversion. Includes warrants to be triggered in case oil prices exceed threshold price of $26 a barrel in 1996, adjusted for inflation thereafter through 2020. | ||||
Interest reduction | 7,450 | 7,450 | Old claims exchanged at par for new bond with 30-year maturity and fixed interest rate of 6.75 percent. | Principal fully collateralized and 14-month rolling interest guarantee. | ||||||
Temporary interest reduction | 3,018 | 3,018 | Old claims exchanged for new bond with 17-year maturity and interest rate of 5 percent in years 1–2, 6 percent in years 3–4, 7 percent in year five, and LIBOR plus ⅞ of 1 percent thereafter. | Twelve-month rolling-interest guarantee for the first five years. | Eligible for debt-equity conversion. | |||||
Zambia (1994) | 200 | — | ![]() | 22 (including resources from IDA debt-reduction facility and grants from Germany, the Netherlands, Sweden, and Switzerland) | At a preannounced price of 11 cents on the dollar. | Buy-back price applied to principal, past due interest canceled. |
Excludes $700 million in downpayment on past due interest.
Excludes $64 million in downpayment on past due interest.
Excludes $29 million in downpayment on past due interest.
Excludes $75 million in interest equalization payments.
Excludes $29 million in downpayment on past due interest.
Includes $2,447 million of debt of domestic commercial banks, for which no enhancements were provided (the Gurria bonds).
Excludes $373 million of cash payments to clear all interest arrears.
Excludes $158 million in catch-up and downpayment on past due interest.
Debt and Debt-Service Reduction in Commercial Bank Agreements, 1987–July 19941
(By year of agreement in principle)
Face Value of Debt to Commercial Banks | Resources Used | Terms | Enhancements for New Instruments | Special Features | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Retired | Issued | |||||||||
(In millions of U.S. dollars) | ||||||||||
Argentina (1987) | ||||||||||
Noncollateralized debt exchange with interest reduction | 15 | 15 | — | Old claims exchanged at par for new exit bonds with a 25-year maturity (12 years’ grace) and 4 percent fixed rate. | — | New bonds excluded from future new money base. | ||||
Argentina (1992) | ![]() ![]() | |||||||||
Principal reduction | 6,663 | 4,331 | 3,0591 (including resources from IMF, World Bank, Inter-American Development Bank, Eximbank Japan, and Argentina’s own resources) | Old claims exchanged for new bonds, with a 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 12-month rolling interest guarantee based on 8 percent rate. | ![]() ![]() | Part of past due interest settled at closing date (through cash payments of $700 million). The balance refinanced (3 years’ grace) bearing interest of LIBOR plus ![]() Interest due reduced to respective monthly LIBOR through end of 1991, and to 4 percent thereafter. Bonds eligible for debt conversion. | |||
Interest reduction | 12,734 | 12,734 | Old claims exchanged at par for new bonds with a 30-year bullet maturity and interest increasing gradually from 4 percent in year one, to 6 percent in year seven, and remaining at that level until maturity. | Principal fully collateralized and 12-month rolling interest guarantee based on 6 percent rate. | ||||||
Bolivia (1987) | ||||||||||
Cash buy-back | 253 | — | 28 (bilateral donations) | At preannounced price of 11 cents on the dollar. | — | — | ||||
Collateralized debt exchange with principal reduction | 204 | 22 | 7 (bilateral donations) | Old claims exchanged for new zero-coupon 25-year bond carrying 9.25 percent yield at a preannounced exchange ratio of 1:0.11. | Principal and interest fully collateralized. | Past due interest canceled under all options. New bonds eligible for debt conversion. | ||||
Debt forgiveness | 16 | — | — | — | — | Includes $0.6 million of debt-for-nature swap. | ||||
Bolivia (1992) | ||||||||||
Cash buy-back | 78 | — | ![]() ![]() | 27 (including resources from IDA debt-reduction facility and grants from the United States, Sweden, Switzerland, and the Netherlands) | At preannounced price of 16 cents on the dollar. | — | Past due interest canceled under all options. | |||
Interest reduction | 33 | 33 | Old claims exchanged at par for non-interest-bearing new bonds with a 30-year bullet maturity. | Principal fully collateralized. | Value recovery clause based on the world price of tin. Upon maturity, bonds exchanged into assets denominated in domestic currency at prenegotiated ratio of 1:1.5 for approved investment in special projects. | |||||
Principal reduction | 60 | 10 | Old claims exchanged for new short-term bonds at prenegotiated exchange ratio of 1:0.16 | — | ||||||
Brazil (1988) | ||||||||||
Noncollateralized debt exchange with interest reduction | 1,100 | 1,100 | — | Old claims exchanged at par for new exit bonds with a 25-year maturity (10 years’ grace) and 6 percent fixed rate. | — | New bonds excluded from future new money base. Eligible for debt-equity conversion program. | ||||
Brazil (1992) | ||||||||||
Principal reduction | 14,210 | 9,237 | ![]() ![]() | 2,800 (own resources and about 400 of new money). Additional 900 are to be delivered in the next two years. | Old claims exchanged for new bonds with a 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 12-month rolling interest guarantee. | ![]() ![]() | Cash payment of $2.0 billion paid during May-December 1991. The past due interest remaining at end of 1990 converted into a 10-year bond (3 years’ grace) at LIBOR plus ![]() | ||
Interest reduction | 12,992 | 12,992 | Old claim exchanged at par for new bonds with a 30-year bullet maturity and interest increasing gradually from 4 percent in year one, to 6 percent in year seven, and remaining at that level until maturity. | Principal fully collateralized and 12-month rolling interest guarantee. | Remaining past due interest accumulated in 1991 and 1992 is converted into 12-year bonds (3 years’ grace) at LIBOR plus ![]() | |||||
Temporary interest reduction | 2,030 | 2,030 | Old claim exchanged at par for new bonds with a 15-year maturity (9 years’ grace) and an interest rate of 4 percent in the years 1–2, 4.5 percent in years 3–4, 5 percent in years 5-6, and LIBOR plus ![]() | Twelve-month rolling interest guarantee for the first six years. | ||||||
Bulgaria (1993) | ![]() ![]() | |||||||||
Cash buy-back | 798 | — | 6522 (expected to come from IMF, World Bank, and own resources). | At preannounced price of 25.1875 cents on the dollar. | — | Buy-back price applies to principal and interest arrears separately. | ||||
Principal reduction | 3,730 | 1,865 | Old claims exchanged for new bonds, with a 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 12-month rolling interest. | ![]() ![]() | At closing, 3 percent of past due interest will be settled through cash payments. The balance will be refinanced as an uncollateralized 17-year bond (7 years’ grace) bearing interest of LIBOR plus ![]() | ||||
Temporary interest reduction | 1,658 | 1,658 | Old claims exchanged at par for new bonds with an 18-year maturity (7 years’ grace) and an interest rate of 2 percent in years 1-2, 2.25 percent in years 3-4, 2.5 percent in year 5, 2.75 percent in year 6, 3 percent in year 7, and LIBOR plus ![]() | Twelve-month rolling interest guarantee for the first seven years. | ||||||
Chile (1988) | ||||||||||
Cash buy-back | 439 | — | 248 (own resources) | $299 million bought back in November 1988 at average price of 56 cents on the dollar; $140 million bought back in November 1989 at average price of 58 cents on the dollar. Price determined in Dutch auction. | — | Resources used for buy-backs subject to aggregate limit of $500 million; debt to be extinguished subject to aggregate ceiling of $2 billion. | ||||
Costa Rica (1989) | ![]() ![]() | |||||||||
Cash buy-back | 991 | — | 1963 (from bilateral and multilateral sources and Costa Rica’s own reserves) | At preannounced price of 16 cents on the dollar. | — | Includes $223 million of past due interest. | ||||
Collateralized debt exchange with interest reduction | 290 | 290 | (a) Old debt exchanged at par for new 20-year bond (10 years’ grace) carrying 6.25 percent fixed, negotiated rate. (b) Past due interest, after 20 percent cash downpayment, exchanged at par for a new claim with a 15-year maturity (no grace period) and LIBOR plus ![]() (c) Old claims (including past due interest) exchanged at par for a new 25-year bond (15 years’ grace) carrying 6.25 percent fixed, negotiated rate. | (a) Eighteen-month interest guarantee (excess enhancement funds to be applied to increase coverage up to 18 months). (b) Thirty-six month interest guarantee. | (a) and (b) available only to banks tendering at least 60 percent of their exposure to the buy-back option. Value recovery clause linked to GDP growth. Converted past due interest equaled $53 million. (c) and (d) optional to banks tendering less than 60 percent of their exposure (including past due interest) to the buy-back option. Converted past due interest equaled $61 million. | |||||
Noncollateralized debt exchange with interest reduction | 289 | 289 | — | (a), (b), (c), and (d): new bonds eligible for debt-equity conversion program. | ||||||
(d) Past due interest, after a 20 percent cash downpayment, exchanged at par for a new claim with a 15-year maturity (no grace period) and LIBOR plus ![]() | Value recovery clause activated if GDP exceeds 1989 GDP by 120 percent in real terms. | |||||||||
Dominican Republic (1993) | ||||||||||
Cash buy-back | 272 | — | ![]() ![]() | 149 (own resources) | At preannounced price of 25 cents on the dollar. | — | Buy-back price applies to principal and interest arrears separately. | |||
Principal reduction | 505 | 328 | Old claims exchanged for new bonds with 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 9-month rolling interest guarantee (to be capitalized until 12 months). | At closing, 12.5 percent of remaining past due interest will be settled through cash payments. The balance will be refinanced as uncollateralized 15-year bonds (3 years’ grace) bearing interest of LIBOR plus ![]() | |||||
Temporary interest reduction | — | — | Old claims exchanged at par for new bonds with an 18-year maturity (9 years’ grace) with equal semiannual installments after grace and an interest rate of 3 percent in years 1–2, 3.5 percent in years 3–4, 4 percent in years 5–6, and LIBOR plus % from years 7 to 18. | — | Agreement included a “pull-back” clause if banks’ allocation does not yield at least 50 percent debt reduction. | |||||
Ecuador (1994) | ||||||||||
Principal reduction | 2,621 | 1,442 | ![]() ![]() | 5834 expected to come from IMF, World Bank, official sources, and own resources) | Old claims exchanged for new bonds with 30-year bullet maturity and interest at LIBOR plus ![]() | Principal fully collateralized and 12-month rolling interest guarantee based on 7 percent. | Part of past due interest settled before closing (through cash payment of $75 million). The balance will be refinanced as an uncollateralized 20-year bond (10 years’ grace) bearing interest of LIBOR plus ![]() | |||
Interest reduction | 1,898 | 1,898 | Old claims exchanged at par for new bonds with 30-year bullet maturity and interest increasing gradually from 3 percent in year 1 to 5 percent in year 11, and remaining at that level until maturity. | Principal fully collateralized and 12-month rolling interest guarantee at 3.75 percent (to be capitalized until it reaches 5 percent). | ||||||
Guyana (1992) | ![]() ![]() | |||||||||
Cash buy-back | 69 | — | 10 (fully financed by IDA debt-reduction facility) | At preannounced price of 14.5 cents on the dollar. | Excludes export credit debt. Buy-back price applied to principal, past due interest ($23.5 million) canceled. | |||||
Jordan (1993) |