—the stage of the restructuring or new money package process when the advisory committee banks seek approval by other creditor banks of a draft agreement negotiated with the restructuring country.

Agreement in principle

—the stage of the restructuring or new money package process when the advisory committee banks seek approval by other creditor banks of a draft agreement negotiated with the restructuring country.

Bank advisory committees

—also called coordinating committees, a limited number of banks designated by the authorities of a country to act on behalf of and as a liaison group with all bank creditors. Once an agreement is reached with the advisory committee it is then submitted for approval to all participating banks. Typically, membership of advisory committees is determined on the basis of banks’ exposure and to secure a regional balance. The bank with the largest exposure usually heads the committee, while member banks often act as regional coordinators.


—loans to developing countries made by commercial banks or other lending institutions in association with the World Bank and other multilateral development banks.

Concerted bank lending

—refers to equiproportional increases in bank exposure, coordinated by a bank advisory committee. There has generally been a close linkage between disbursements of concerted bank lending to a country and performance under a Fund-supported adjustment program.

Consolidation period

—the period in which amortization payments to be rescheduled or refinanced under the terms of a restructuring agreement have fallen or will fall due.


—the party on the other side of a transaction, e.g., a swap transaction is undertaken between two agents with each being the counterparty of the other.

Critical mass

—a minimum amount of bank commitments to a new money package giving reasonable assurance to Fund management that the financing assumptions of an adjustment program are realistic and that the program can be submitted to the Fund Executive Board for approval.

Current maturities

—principal and interest payments falling due within the consolidation period.

Debt refinancing

—either a rollover of maturing debt obligations or the conversion of existing or future debt service payments into a new medium-term loan.

Debt rescheduling

—formal deferment of debt-service payments with new maturities applying to the deferred amounts.

Economic subcommittee

—subcommittee of a bank advisory committee appointed to evaluate economic prospects of a restructuring country.

Events of default

—any event which allows creditor banks to declare the outstanding principal, as well as all accrued interest, due and payable on demand.

Floating rate notes

—unsecured notes paying interest at rates varying with the yield on a reference interest rate such as LIBOR.


—London interbank bid rate. The rate which a bank is willing to pay for funds in the international interbank market.


—London interbank offered rate. The rate at which banks in London place Eurocurrencies with each other. It is frequently used in international loans as a reference rate.

Maturity period

—the grace period plus the repayment period.


—an official declaration or decree by a government postponing all or certain types of maturing debt for a given period.

Multiyear restructuring agreement (MYRA)

—restructuring agreement where the consolidation period covers more than two years beyond the date of the signing of the agreement. These arrangements aim principally at eliminating a hump in scheduled amortization which may prevent a return to normal market access. In the context of MYRAs, banks have sought special monitoring procedures to seek to ensure that adequate financial policies would be followed once the restructuring country no longer is using Fund resources. As part of these special monitoring procedures some restructuring countries have requested that the Fund enhance its Article IV consultations.


—redesignation of credits originally granted to a government or central bank for general balance of payments purposes as loans to parastatals or private sector borrowers.

Redenomination clause

—a clause which, in the context of a debt restructuring agreement, allows banks to redenominate their loans in their home currency. The agreement normally specifies the amount, timing, and currency eligibility of such redenomination as well as the applicable reference interest rates.


—the process in which banks’ assets become more marketable through, for example, the substitution of floating rate notes for syndicated lending, the introduction of transferability into international credits, and the packaging of existing assets for resale.

Serial MYRA

—agreement where subperiods within the consolidation period of a multiyear restructuring agreement (MYRA) are made eligible for restructuring based on periodic reviews of economic performance and prospects. The restructuring for later years in the consolidation period depends on certain conditions being met with regard to economic performance and monitoring arrangements.

Signed agreement

—the stage of the restructuring or new money process when creditor banks sign the agreement in principle reached between the advisory committee banks and the restructuring country. Signing the agreement makes it legally effective provided all preconditions contained in the agreement are met.


—an agreement between bank creditors and a government on a temporary deferment of amortization payments on long-term debt and on a freezing or rollover of short-term debt. Its principal objectives are to prevent a deterioration of the payments situation during the restructuring negotiation period and to preclude an uneven reduction in debt to some banks.


—the process by which a loan, arranged by one group of banks (i.e., the “lead banks”), is funded by being sold to another group of banks.

Trade deposit facility

—facility under which participating creditor banks make foreign exchange deposits at the central bank of the restructuring country. These deposits then may be withdrawn by these banks to finance specified foreign trade transactions with the restructuring country.