Key Benefits:
President of the Republic,
On the report of the Prime Minister and the Minister for Foreign Affairs and International Development,
Considering the Constitution, in particular articles 52 to 55;
Vu le Decree No. 53-192 of 14 March 1953 amended on the ratification and publication of international commitments undertaken by France,
Decrete:
The debt consolidation agreement between the Government of the French Republic and the Government of the Republic of Chad, signed in Paris on 2 October 2015, will be published in the Official Journal of the French Republic.
The Prime Minister and the Minister for Foreign Affairs and International Development are responsible, each with respect to him, for the execution of this decree, which will be published in the Official Journal of the French Republic.
AGREEMENT OF CONSOLIDATION OF DETECT TO THE GOVERNMENT OF THE FRENCH REPUBLIC AND THE GOVERNMENT OF THE TCHAD REPUBLIC, SIGNED TO PARIS 2 OCTOBER 2015
The Government of the French Republic and the Government of the Republic of Chad, with a view to implementing the recommendations of the Chartered Verbal Trial of the Paris Club of 24 June 2015, as well as the Debt Initiative of the Very Indebted Poor Countries, agreed as follows:
Article 1
1/ The debt of the Republic of Chad in respect of the French Republic referred to in this Agreement shall be constituted by the commercial credits arising from export contracts or credit agreements, of an initial credit period of more than one year, entered into before 30 June 1989, guaranteed by Coface on behalf of the French Government and granted to the Government of the Republic of Chad or its public sector or benefiting from their guarantee.
2/ 100 per cent of the amounts (including arrears, delayed interest and accrued interest as at 31 May 2015 inclusive) remaining due as at 1 June 2015 for the credits referred to in paragraph 1 of this section are cancelled.
3/ The amount of debts referred to in Article 1 paragraphs 1/ and 2/ shall be assessed as at the date of this Agreement at 50,433,773.76 euros (Appendix).
4/ In the event that amendments that increase the Government of the Republic of Chad's commitments to the Government of the French Republic would have been or would be made to the debts referred to above, as of 30 June 1989, the resulting new commitments would not be covered by the provisions of this Agreement.
Article 2
The Republic of Chad was declared eligible for the HIPC initiative strengthened by IDA and the IMF in 2001 and passed the Completion Point in April 2015. In this context, the Republic of Chad undertakes to seek, as soon as possible, to obtain from all its external creditors not participating in the Certified Verbal trial of 24 June 2015, their appropriate contribution in terms of debt relief under the enhanced HIPC initiative, beyond the traditional debt relief mechanisms and in a manner consistent with the sharing of the burden proportional to their relative exposure to total value at the point of decision
The appropriateness of the debt relief provided will be assessed not only on the basis of the net present value reduction of the debt calculated at the Appropriated Market Rate, but also in the terms of repayment of debts that are not cancelled. To this end, all significant elements will be taken into account, including the level of cash payments received by these creditor countries in relation to their share in the external debt of the Republic of Chad, the nature and characteristics of all options offered, including debt repurchases, and all the characteristics of reclaimed receivables and in particular the terms of reimbursement in any form and in general the financial relations between the Republic of Chad and all creditors.
As a result, the Republic of Chad is committed to not granting to any of the categories of foreign bilateral and commercial creditors - and in particular procedural creditors, creditor countries that do not participate in the Verbal Chartered Trial of 24 June 2015, commercial banks, suppliers and bondholders - more favourable treatment than that granted to participating creditor countries.
Article 3
The annex cited in this Agreement is an integral part of the Agreement. In the event of a mutually recognized assessment error, the amounts so determined may be amended by agreement between the parties.
Article 4
Coface, on the one hand, and the Treasury and Public Accounts Directorate of the Republic of Chad, on the other hand, are responsible for their respective Government for the implementation of this Agreement.
Article 5
This Agreement shall enter into force on the date of its signature.
Done in Paris, October 2, 2015, in two French-language copies.
For the Government of the French Republic: Michel Sapin
Minister of Finance and Public Accounts
For the Government of the Republic of Chad: Ngarlenan Docdjengar
Minister of Finance and Budget
Done on November 23, 2015.
François Hollande
By the President of the Republic:
The Prime Minister,
Manuel Valls
Minister for Foreign Affairs and International Development,
Laurent Fabius
