This figure ascribes 40 percent of SRN’s debt to the government, reflecting its 40 percent ownership share.
These arrears will be reflected in the debt stock in the next DSA in line with the clearance strategy adopted by the authorities. Further work is needed to identify the terms of the SOE debt so it can be included in totals of public debt.
State and local debt amounts to less than 0.1 percent of GDP.
Arrears to Angola were very small, so outstanding arrears at end-2019 were $61, below the de minimis threshold that would warrant an “in debt distress” rating.
The fourth panel of Figure 1 presenting debt service-to-revenue ratios under standard alternative scenarios does not include the Glencore debt contract contingency mechanisms.
Debt service under the Glencore contract includes a mandatory amortization and interest payment plus a cash sweep component that falls as the Doba oil price goes below a threshold. Because oil prices have fallen so far in the baseline, this contingency is fully exercised even in the baseline and the standard commodity price shock scenarios. As a second contingency mechanism, the contract allows Chad to defer some mandatory payments as prices fall, but the cumulative deferred amortization is capped $75 million. In the baseline (and standard commodity price shock) this contingency is exercised only partly and only in 2021.
As noted in DSA ¶11, the customized oil shock models the impact of oil prices on revenue, so it continues to differ from the standard commodity shock even after the contingency mechanism’s cap is reached in 2021.