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Dr.. Appearance of Mohammed Saleh: Towards the settlement of official indebtedness
The conditions of the Paris Club Agreement
Club Terms
With a group of official creditors
The Republic of Iraq signed an agreement on 21 November 2004
Of the Paris Club countries, and obtained a reduction of 80% of the total debt of Iraq
Sovereign with the international group of (19) whose total debt on
Countries
Iraq as at the end of December 2004 was approximately $ 9.38 billion in nominal terms (out of a total)
The debt of the country initially estimated at $ 128 billion (called debt)
Prior to 1990 and were addressed in the following stages:
1. Treatment of the principal debt Treatment Principal
Three stages were adopted to achieve an 80% reduction in external debt:
Phase I: Phase
Write off 30% of total debt (as it was) on 1 January 2005, as it happened
Under which Iraq is to reduce the amount of $ 11.6 billion.
Phase II: ll Phase
A further 30 per cent reduction in total debt once Iraq signs an agreement
Papers in public debt
Dr.. The appearance of Mohammed Thalh towards the settlement of official foreign indebtedness of Iraq Page 2 of 5
Credit Arrangements by the Stand / SBA with the IMF
(Ie, at the international level), with a reduction of 11.6% at this stage
Program with the Fund at the end of 2005. )
The rest of the debt (40% at this stage) was scheduled for a period of 23 years, inclusive
A grace period of six years.
Phase III: LLL Phase
Achieve a final final reduction of 20% by completing Iraq
On total debt, conditional
Of the SBA with the International Monetary Fund referred to above and completed
Note the amount of the reduction for these results within three years from the date of signing the program. that
The phase was about $ 8.7 billion.
To a total cut
Thus ended the treatments of religion according to the three stages referred to
Iraq's external debt to the Paris Club (19) was $ 9.38 billion
(Ie, the approved reduction of 80%) provided that the value is equal
Nominal value of debt with NPV. For example, the sector's debt was deducted
(US $ 35 million or less) for each small creditor
Almost 90% of the debt. As I paid a reward
The debtors listed in cash (without scheduling)
Is about 10% of the original debt amount and is equal to the discount rate of 80% if it is made
Schedule them on condition that the nominal value of the debt is equal to NPV. Based on
Iraq, for example, paid nearly 450 million dollars to creditors
Lyon in cash
For their receivables of $ 5.4 billion and a discount rate of about 10%
Approximately . It is noted that the United States has begun to reduce its indebtedness on debt
Iraq by 100%, and the Russian Federation has reduced its official debt to Iraq by a percentage increased
Papers in public debt
Dr.. The appearance of Mohammed Thalh towards the settlement of the official external indebtedness of Iraq Page 3 of 5
The 94% of the two members of the Paris Club countries as well as other countries
Has reduced its sovereign debt to Iraq by 100% such as Cyprus, Slovenia and Malta
(All from a group of countries outside the Paris Club.
And Algeria) recently
Interest Treatment
The accrued interest was capitalized on the rest of the debt of 20% as well as the capitalization of accrued interest
On the rest of the total debt above) during the first (six) years following the signing of an agreement
Paris Club and according to the details set out below:
(chart missing, refer to link)
Papers in public debt
Dr.. The appearance of Mohammed Thalh towards the settlement of official foreign indebtedness of Iraq Page 4 of 5
It should be noted that, after six years of easing the burden of cash flows (ie, assisting Iraq)
To defer payment of the principal with a high degree of capitalization of interest (the total debt becomes disposable
To gradually pay 17 years and equal (semi-annual) payments of 34 payments over the period
Amounting to $ 8.7 billion. The first installment of debt has been achieved (in accordance with the principle of debt amortization)
Amortization) as of 1 January 2011 (negative 37.0%) and the second installment
As of 1 January 2012 and its value is negative (39.0%) and the last payment will be in 1 /
(20.5%) and is one of the largest payments to be made
Time. The annual interest on the rest of the debt that has been scheduled is about
. % 5.8 Note
The terms of the Paris Club Agreement apply to Iraq's debt with all its creditors (sovereign debt of
Outside the 54 Paris Club countries and trade debt and more than 6,000
(Ie, within the principle of treatment equivalence in international law, as an agreement
The Paris Club is a standard agreement that applies to all Iraqi debts before 1990.
In conclusion, in order to implement the terms of the Paris Club Agreement and ensure its proper application,
The French banking financial institution known as LAZARD to act as financial advisor
And follow up the mechanism for settlement of Iraq's debt scheduled with the group of Paris Club countries related.
(*) Iraqi economic researcher and writer, former deputy governor of the Central Bank and financial advisor
Former Prime Minister Dr. Haidar Abadi
(**) led the negotiating team to reach the Paris Club Agreement to reduce the external indebtedness of the Republic
Iraq, Mr. Adel Abdul Mahdi, and a technical team composed of Dr. Sinan
Al-Shabibi, former Governor of the Central Bank of Iraq and Dr. Aziz Jaafar,
The appearance of Mohammed Saleh and Dr. Ahmed Breihi and conducted legal consultations with the Office
International Law (Clare Gatelop) and other technical consultations with the International Monetary Fund
Of the UN Security Council resolution
In implementation of Act No. 1483 of May 2003. After standing on
The results of an analysis of the so-called debt sustainability analysis
, The signing ceremony of the above agreement took place at the Paris Club headquarters on 21 November
Which resulted in a commitment to write off more than $ 100 billion
Iraq's external debt.
Copyright
Iraqi Economists Network. Reproduction is permitted provided that reference is made to the source
Iraqi Economists Network. 29 October 2018
[You must be registered and logged in to see this link.]
The conditions of the Paris Club Agreement
Club Terms
With a group of official creditors
The Republic of Iraq signed an agreement on 21 November 2004
Of the Paris Club countries, and obtained a reduction of 80% of the total debt of Iraq
Sovereign with the international group of (19) whose total debt on
Countries
Iraq as at the end of December 2004 was approximately $ 9.38 billion in nominal terms (out of a total)
The debt of the country initially estimated at $ 128 billion (called debt)
Prior to 1990 and were addressed in the following stages:
1. Treatment of the principal debt Treatment Principal
Three stages were adopted to achieve an 80% reduction in external debt:
Phase I: Phase
Write off 30% of total debt (as it was) on 1 January 2005, as it happened
Under which Iraq is to reduce the amount of $ 11.6 billion.
Phase II: ll Phase
A further 30 per cent reduction in total debt once Iraq signs an agreement
Papers in public debt
Dr.. The appearance of Mohammed Thalh towards the settlement of official foreign indebtedness of Iraq Page 2 of 5
Credit Arrangements by the Stand / SBA with the IMF
(Ie, at the international level), with a reduction of 11.6% at this stage
Program with the Fund at the end of 2005. )
The rest of the debt (40% at this stage) was scheduled for a period of 23 years, inclusive
A grace period of six years.
Phase III: LLL Phase
Achieve a final final reduction of 20% by completing Iraq
On total debt, conditional
Of the SBA with the International Monetary Fund referred to above and completed
Note the amount of the reduction for these results within three years from the date of signing the program. that
The phase was about $ 8.7 billion.
To a total cut
Thus ended the treatments of religion according to the three stages referred to
Iraq's external debt to the Paris Club (19) was $ 9.38 billion
(Ie, the approved reduction of 80%) provided that the value is equal
Nominal value of debt with NPV. For example, the sector's debt was deducted
(US $ 35 million or less) for each small creditor
Almost 90% of the debt. As I paid a reward
The debtors listed in cash (without scheduling)
Is about 10% of the original debt amount and is equal to the discount rate of 80% if it is made
Schedule them on condition that the nominal value of the debt is equal to NPV. Based on
Iraq, for example, paid nearly 450 million dollars to creditors
Lyon in cash
For their receivables of $ 5.4 billion and a discount rate of about 10%
Approximately . It is noted that the United States has begun to reduce its indebtedness on debt
Iraq by 100%, and the Russian Federation has reduced its official debt to Iraq by a percentage increased
Papers in public debt
Dr.. The appearance of Mohammed Thalh towards the settlement of the official external indebtedness of Iraq Page 3 of 5
The 94% of the two members of the Paris Club countries as well as other countries
Has reduced its sovereign debt to Iraq by 100% such as Cyprus, Slovenia and Malta
(All from a group of countries outside the Paris Club.
And Algeria) recently
Interest Treatment
The accrued interest was capitalized on the rest of the debt of 20% as well as the capitalization of accrued interest
On the rest of the total debt above) during the first (six) years following the signing of an agreement
Paris Club and according to the details set out below:
(chart missing, refer to link)
Papers in public debt
Dr.. The appearance of Mohammed Thalh towards the settlement of official foreign indebtedness of Iraq Page 4 of 5
It should be noted that, after six years of easing the burden of cash flows (ie, assisting Iraq)
To defer payment of the principal with a high degree of capitalization of interest (the total debt becomes disposable
To gradually pay 17 years and equal (semi-annual) payments of 34 payments over the period
Amounting to $ 8.7 billion. The first installment of debt has been achieved (in accordance with the principle of debt amortization)
Amortization) as of 1 January 2011 (negative 37.0%) and the second installment
As of 1 January 2012 and its value is negative (39.0%) and the last payment will be in 1 /
(20.5%) and is one of the largest payments to be made
Time. The annual interest on the rest of the debt that has been scheduled is about
. % 5.8 Note
The terms of the Paris Club Agreement apply to Iraq's debt with all its creditors (sovereign debt of
Outside the 54 Paris Club countries and trade debt and more than 6,000
(Ie, within the principle of treatment equivalence in international law, as an agreement
The Paris Club is a standard agreement that applies to all Iraqi debts before 1990.
In conclusion, in order to implement the terms of the Paris Club Agreement and ensure its proper application,
The French banking financial institution known as LAZARD to act as financial advisor
And follow up the mechanism for settlement of Iraq's debt scheduled with the group of Paris Club countries related.
(*) Iraqi economic researcher and writer, former deputy governor of the Central Bank and financial advisor
Former Prime Minister Dr. Haidar Abadi
(**) led the negotiating team to reach the Paris Club Agreement to reduce the external indebtedness of the Republic
Iraq, Mr. Adel Abdul Mahdi, and a technical team composed of Dr. Sinan
Al-Shabibi, former Governor of the Central Bank of Iraq and Dr. Aziz Jaafar,
The appearance of Mohammed Saleh and Dr. Ahmed Breihi and conducted legal consultations with the Office
International Law (Clare Gatelop) and other technical consultations with the International Monetary Fund
Of the UN Security Council resolution
In implementation of Act No. 1483 of May 2003. After standing on
The results of an analysis of the so-called debt sustainability analysis
, The signing ceremony of the above agreement took place at the Paris Club headquarters on 21 November
Which resulted in a commitment to write off more than $ 100 billion
Iraq's external debt.
Copyright
Iraqi Economists Network. Reproduction is permitted provided that reference is made to the sourceIraqi Economists Network. 29 October 2018
[You must be registered and logged in to see this link.]
