exotix capital EXOTIX DEVELOPING MARKETS GUIDE Debt and Risk across the Frontier Exotix Developing Markets Guide Exotix Capital Exotix Developing Markets Guide Debt and Risk across the Frontier Sixth Edition Exotix Capital Watson House London, UK ISBN 978-3-030-05866-1 ISBN 978-3-030-05867-8 (eBook) https://doi.org/10.1007/978-3-030-05867-8 Library of Congress Control Number: 2019930048 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2019 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Acknowledgements The Exotix Developing Markets Guide is based on our vast, accumulated knowledge of illiquid and frontier emerging markets, stretching back many years Exotix itself has been in this business for some 20 years Much of the book is based on professional and institutional experience, as well as previous editions of the book and our other published material We have also drawn from a wealth of other sources Many are noted in the text along the way, but we would highlight the following useful ones; bond prospectuses (generally available on Bloomberg or listing exchanges) and loan documentation; the IMF, especially for its invaluable country reports, World Economic Outlook and other statistical databases, Regional Economic Outlooks and annual report on exchange arrangements; the World Bank, especially its Global Development Finance, debt tables and World Development Indicators; a host of national government sources, including central banks, ministries of finance, debt management offices, statistical agencies and government websites; the Paris Club, UK Foreign Office, US State Department, UN, European Commission, IEA, US Energy Information Administration (EIA), CIA World Factbook, EBRD, Asian Development Bank and African Development Bank; Haver Analytics; national electoral commissions and the IFES Election Guide; the Economist and EIU, the BBC, Reuters, the Financial Times, Bloomberg and various local media We have endeavoured to ensure that the information in this book is as up-to-date and accurate as possible In general, the cut-off for information was end-September 2018, although we tried to include new issues in October or other significant events until the publication date But this is a v vi ACKNOWLEDGEMENTS moving target We hope you will understand that, with a project of this magnitude, it is difficult to pick up everything, so please forgive any errors and omissions Finally, we’d like to express our sincere appreciation to the other contributors to the book and the production team, including: Tolu Alamutu, Rafael Elias and Kiti Pantskhava for their contributions on corporate bond markets, the editorial team and various other Exotix staff who have made important contributions throughout the project This book would not have been possible without their help We’d also like to thank Charles Blitzer (Blitzer Consulting) and Sebastian Espinosa (White Oak) for their helpful comments on the introduction and other country chapters In particular, we’d like to give a special thank you to Luke Richardson for his research assistance and tireless dedication and commitment throughout the project We’d also like to thank Peder Beck-Friis and Leon Ernst for research assistance provided during their time at Exotix Chief Economist and Global Head of Fixed Income Research Senior Economist Stuart Culverhouse Christopher Dielmann Contents Introduction 1 Summary Statistics 19 Angola 29 Argentina 49 Azerbaijan 87 Barbados103 Belarus121 Belize133 Bosnia and Herzegovina155 Cameroon169 Congo, Republic of183 Cote d’Ivoire201 vii viii Contents Cuba223 Dominican Republic249 Ecuador269 El Salvador291 Ethiopia305 Gabon319 Georgia333 Ghana349 Greece367 Grenada397 Iraq415 Jamaica433 Kazakhstan455 Kenya479 Mongolia499 Mozambique515 Nigeria541 Pakistan561 Contents ix Rwanda581 Senegal595 Seychelles609 Sri Lanka629 Sudan645 Suriname663 Tajikistan675 Tanzania687 Trinidad and Tobago703 Ukraine719 Venezuela757 Vietnam785 Zambia807 Zimbabwe829 Annex A: Supranational Bonds Issues843 Annex B: Paris Club Terms853 Acronyms and Abbreviations ADB AfDB Afrexim BADEA BCEAO BEAC BOAD BRI CABEI CAF Asian Development Bank African Development Bank African Export-Import Bank Arab Bank for Economic Development in Africa Central Bank of West African States Bank of Central African States West African Development Bank Belt and Road Initiative Central American Bank for Economic Integration Corporacion Andina de Fomento – Latin American Development Bank CARICOM Caribbean Community – promotes economic integration and free trade CBD Caribbean Development Bank CEMAC Economic and Monetary Union of Central Africa COMESA Common Market for Eastern and Southern Africa CP Completion point CPI Consumer price index CRF Common Reduction Factor DFID Department for International Development DP Decision point EBRD European Bank for Reconstruction and Development EC European Commission ECCAS Economic Community of Central African States ECCB Eastern Caribbean Central Bank ECCU Eastern Caribbean Currency Union xi ZIMBABWE 839 From February 2001, Zimbabwe remained in continuous arrears to the IMF, and the Board considered the compulsory expulsion of the country from the Fund on several occasions between 2003 and 2006, although formal action was never taken There has been limited success in arrears clearance since the end of the SMPs, although all PRGT (ECF) obligations to the IMF were cleared in October 2016, as announced in a clearance plan a year previously Discussions on arrears clearance between the authorities and the World Bank and African Development Bank (AfDB) continue Following a favourable World Bank technical assistance mission to Zimbabwe in early 2017, the authorities have good incentives to clear arrears and continue development programmes RBZ deputy governor Khupikile Mlambo said in March 2018 that Zimbabwe hoped to clear all multilateral arrears by September Arrears to bilateral creditors also need resolution The IMF mission chief said in November 2017 that, for any future financing request to be considered, Zimbabwe would need to clear its arrears to the World Bank, AfDB and EIB, among other reforms In media reports in March 2018, Deputy Finance Minister Terence Mukupe quoted IMF Managing Director Christine Lagarde as saying that, if the 2018 elections were declared free and fair, then she would be one of the first people on their doorstep, and would likely announce “something for us within 48 hours” He said that all multilaterals were “talking about pressing the reset button” He also suggested that Zimbabwe’s problem was not the debt level, but its ability to repay, due to political reasons; however, significant inflows to the country already since Mugabe’s departure were helping it to accumulate reserves and service its debt He reported progress in the reform and potential privatisation of SOEs and significant interest among potential buyers On Ministry of Finance and Economic Development figures for 2016 (latest), other significant multilateral development partners were the Global Fund and the AfDB, providing development partner support disbursements of US$164mn and US$15mn, respectively, in 2016 The Global Fund is a partnership between international organisations to accelerate the end of epidemic diseases, and is also a financing institution As of August 2018, the AfDB has 16 active projects focused on infrastructure development and improving financial management Meanwhile, debt owed to the World Bank was mostly arrears in 2016 Recently approved projects (the largest were for financial management, water infrastructure and the health sector) had relatively small commitment amounts relative to projects approved in the 1990s (now closed) 840 EXOTIX CAPITAL Paris Club and Bilateral Creditors Zimbabwe has never had a Paris Club agreement, despite large outstanding Paris Club debt and significant arrears Finance Minister Patrick Chinamasa visited France in June 2016 for talks with Paris Club officials to resolve arrears The latest figures for end-2016 showed that, of the US$3.041bn that Zimbabwe owed to Paris Club creditors, only US$223mn was outstanding principal and US$2.818bn was arrears (large PDI) The most significant bilateral development partners, as of 2016, were the UK, China and the EU, providing total development support (including outstanding bilateral loans) of US$109mn, US$63mn and US$31mn respectively It was reported in April 2018 that China had written off debt owed to its institutions, among other bilateral deals, although few details have been provided Sovereign Commercial Debt Zimbabwe has never issued any eurobonds and has no marketable commercial debt Access to international financing (commercial and official sectors) is limited due to large arrears and sanctions imposed by various countries Restoring access would depend in part on improving international relations, an arrears-clearance strategy and securing debt relief Corporate Bond Markets According to Bloomberg, in September 2018, only four bonds have been issued by Zimbabwean corporates to date, and three remain outstanding The first issue was for US$50mn, issued by CBZ Holdings Ltd (CBZBNK) in April 2011 with an 8.5% coupon It had a bullet maturity in April 2014 The three outstanding bonds are shown in the table Zimbabwe’s outstanding corporate bonds Issuer Amount issued Amount outstanding GetBucks Financial Services US$5.44mn US$5.44mn Ltd (GTBKCS) Infrastructure Development US$15mn US$4.5mn Bank of Zimbabwe (INFZIM) Infrastructure Development US$50mn US$15mn Bank of Zimbabwe (INFZIM) Source: Bloomberg Maturity Oct 2019 (Bullet) Dec 2019 (Sinkable) Dec 2019 (Sinkable) Coupon Issue date 11% Apr 2017 Dec 2014 Dec 2014 8% 8% ZIMBABWE 841 In May 2018, the UK government’s development finance institution, the Commonwealth Development Corporation (CDC), announced that US$100mn in loans would be issued to the Zimbabwe private sector, the first such commercial arrangement between London and Harare in over 20 years, and was finalising a list of recipients with partner Standard Chartered Bank, with whom the CDC had lent to Sierra Leone in 2015, during the Ebola epidemic Zimbabwe opposition politicians criticised the timing of the decision, including former Finance Minister Tendai Biti, who said that foreign government lending should wait until credible elections have taken place However, the CDC points out that the lending is to the private sector, which is struggling to operate with US dollar shortages, and does not represent an endorsement of the government Annex A: Supranational Bonds Issues There are a number of hard currency bond issues from various supranational and regional financial institutions that trade actively in the secondary market Descriptions are given below for the more actively traded, longer maturity bonds from six such issuers African Export-Import Bank The African Export Import Bank was established in Abuja, Nigeria in October 1993 by African governments, African private and institutional investors as well as non–African financial institutions and private investors It launched in 1994 with headquarters in Cairo Its purpose is financing, promoting and expanding intra-African and extra-African trade Shareholders come in four categories: (A) African governments, central banks and regional institutions; (B) African private investors and financial institutions; (C) Non-African financial institutions, export credit agencies and private investors; (D) other institutions and individuals Its first major bond issue, a US$300mn five-year bond with a coupon of 8.75%, came in November 2009 The bond matured in 2014 More bonds followed, with US$500mn five-year issues in 2011 and 2013, both of which have since matured It now has four outstanding eurobonds, amounting to a total of US$2.85bn notional, following its most recent issue, a US$500mn five- year bond, in October 2018 Details are given below © The Author(s) 2019 Exotix Capital, Exotix Developing Markets Guide, https://doi.org/10.1007/978-3-030-05867-8 843 844 Annex A: Supranational Bonds Issues African Export-Import Bank bond Afreximbank 4.75% 2019 Bloomberg ticker: AFREXI Borrower Issue date Form ISIN Issue size Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Lead manager Exchange Governing law The African Export-Import Bank 29 July 2014 EuroMTN XS1091688660 US$700mn US dollar Min US$200,000/increments on US$1000 Bullet 29 July 2019 6.5%, paid semi-annually Euroclear/Clearstream 30/360 T + 2 HSBC Dublin, Frankfurt, Munich, Stuttgart English Source: Bloomberg African Export-Import Bank bond Afreximbank 4% 2021 Bloomberg ticker: AFREXI Borrower Issue date Form ISIN Issue size Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead managers Exchange Governing law Source: Bloomberg The African Export-Import Bank 24 May 2016 EuroMTN XS1418627821 US$900mn US dollar Min US$200,000/increments on US$1000 Bullet 24 May 2021 4%, paid semi-annually Euroclear/Clearstream 30/360 T + 2 Barclays, RMB International Berlin, Dublin, Dusseldorf, Frankfurt, Stuttgart English Annex A: Supranational Bonds Issues 845 African Export-Import Bank bond Afreximbank 5.25% 2023 Bloomberg ticker: AFREXI Borrower Issue date Form ISIN Issue size Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead managers Exchange Governing law The African Export-Import Bank 11 October 2018 EuroMTN XS1892247963 US$500mn US dollar Min US$200,000/increments on US$1000 Bullet 11 October 2023 5.25%, paid semi-annually Clearstream 30/360 T + 2 Barclays, HSBC, MUFG, RMB, Standard Chartered Berlin, Stuttgart English Source: Bloomberg African Export-Import Bank bond Afreximbank 4.125% 2024 Bloomberg ticker: AFREXI Borrower Issue date Form ISIN Issue size Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead managers Exchange Governing law Source: Bloomberg The African Export-Import Bank 20 June 2017 EuroMTN XS1633896813 US$750mn US dollar Min US$200,000/increments on US$1000 Bullet 20 June 2024 4.125%, paid semi-annually Euroclear/Clearstream 30/360 T + 2 Barclays, Commerzbank, HSBC, MUFG Securities, Standard Chartered Dublin, Frankfurt, Stuttgart English 846 Annex A: Supranational Bonds Issues Eastern & Southern African Trade and Development Bank The Eastern and Southern African Trade and Development Bank, headquartered in Burundi, commonly known as the TDB (formerly, the PTA Bank), was established on November 1985 This was the beginning of the Preferential Trade Area for the Eastern and Southern African States (PTA), which was later transformed into the Common Market for Eastern and Southern Africa (COMESA) There are 18 African country members plus the People’s Republic of China (joined in 2000) and the African Development Bank The bank’s mission is to provide development capital and promote increased trade and project financing The bank has supranational status and has two outstanding hard currency bonds, although one matures in December 2018 (issued in 2013) The remaining bond is shown below A previous bond issued in 2010 matured in 2016 Eastern and Southern Africa Trade and Development Bank (PTA) bond PTA Bank 5.375% 2022 Bloomberg ticker: PTABNK Borrower Issue date Form ISIN Issue size Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead manager Exchange Governing law Source: Bloomberg The Eastern and Southern Africa Trade and Development Bank 14 March 2017 EuroMTN XS1520309839 US$700mn US dollar Min US$200,000/increments on US$1000 Bullet 14 March 2022 5.375%, paid semi-annually Euroclear/Clearstream 30/360 T + 2 Commerzbank, MUFG Securities, Standard Chartered Dublin English Annex A: Supranational Bonds Issues 847 Black Sea Trade & Development Bank Black Sea Trade & Development Bank, headquartered in Greece, offers various financial services The Bank provides term loans, credit lines, equity and guarantees for projects and trade financing in both the public and private sectors Black Sea finances the economic development, regional cooperation and enterprise development of various countries geographically located near to the Black Sea Its members are Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine It was established in 1997 and commenced operations in 1999 It has one outstanding USD bond shown below A previous bond issued in 2009 matured in 2012 Black Sea Trade and Development Bank bond Black Sea Trade and Development Bank 4.875% 2021 Bloomberg ticker: BSTDBK Borrower Issue date Form ISIN Issue size Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead manager Exchange Governing law Source: Bloomberg The Black Sea Trade and Development Bank May 2016 EuroMTN XS1405888576 US$500mn US dollar Min US$200,000/increments on US$1000 Bullet May 2021 4.875%, paid semi-annually Euroclear/Clearstream 30/360 T + 2 HSBC, JP Morgan Berlin, Dublin, Frankfurt English 848 Annex A: Supranational Bonds Issues Africa Finance Corporation AFC provides banking solutions: project development, technical advisory, principal investing, corporate finance and financial advisory services Founded in 2007 and headquartered in Nigeria, AFC serves power, infrastructure, oil & gas, telecoms, chemical, manufacturing, cement, agroprocessing, maritime and logistics sectors in Africa Its members include 19 African countries The Central Bank of Nigeria is also a large shareholder, along with some private investors AFC has two main USD bonds outstanding Africa Finance Corporation bond Africa Finance Corp 4.375% 2020 Bloomberg ticker: AFRFIN Borrower Issue date Form ISIN Issue size Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead manager Exchange Governing law Africa Finance Corporation 29 April 2015 EuroMTN XS1225008538 US$750mn US dollar Min US$200,000/increments on US$1000 Bullet 29 April 2020 4.875%, paid semi-annually Clearstream 30/360 T + 2 Citi, Mitsubishi UFJ, Standard Chartered, Standard Bank Berlin, Dublin, Frankfurt, Munich English Source: Bloomberg Africa Finance Corporation bond Africa Finance Corp 3.875% 2024 Bloomberg ticker: AFRFIN Borrower Issue date Form Africa Finance Corporation 13 April 2017 Eurobond (continued) Annex A: Supranational Bonds Issues 849 (continued) Africa Finance Corporation bond Africa Finance Corp 3.875% 2024 Bloomberg ticker: AFRFIN ISIN Issue size Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead manager XS1598047550 US$500mn US dollar Min US$200,000/increments on US$1000 Bullet 13 April 2024 3.875%, paid semi-annually Euroclear/Clearstream 30/360 T + 2 Citi, JP Morgan, MUFG Securities, Standard Chartered Dublin English Exchange Governing law Source: Bloomberg Eurasian Development Bank The Eurasia Development Bank, headquartered in Almaty, Kazakhstan, was established in 2006 by founding members the Russian Federation and Republic of Kazakhstan to finance economic development and integration of the member states Armenia and Tajikistan joined as members in 2009, followed by Belarus in 2010 and Kyrgyzstan in 2011 It has two outstanding USD-denominated bonds, shown below, and also ruble- and tengedenominated bonds A repurchase tender for both USD bonds took place in November 2015 A previous USD bond issued in 2009 matured in 2014 Eurasian Development Bank bond Eurasian Development Bank 5% 2020 Bloomberg ticker: EURDEV Borrower Issue date Form ISIN Issue size Eurasian Development Bank 26 September 2013 Eurobond XS0972645112 US$500mn (continued) 850 Annex A: Supranational Bonds Issues (continued) Eurasian Development Bank bond Eurasian Development Bank 5% 2020 Bloomberg ticker: EURDEV Amount outstanding Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead manager Exchange Governing law US$296.331mn US dollar Min US$200,000/increments on US$1000 Bullet 26 September 2020 5%, paid semi-annually Euroclear/Clearstream/LSE Reportable 30/360 T + 2 BNP Paribas, Deutsche Bank, HSBC, JP Morgan London English Source: Bloomberg Eurasian Development Bank bond Eurasian Development Bank 4.767% 2022 Bloomberg ticker: EURDEV Borrower Issue date Form ISIN Issue size Amount outstanding Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead manager Exchange Governing law Source: Bloomberg Eurasian Development Bank 20 September 2012 EuroMNT XS0831571434 US$500mn US$335.812mn US dollar Min US$200,000/increments on US$1000 Bullet 20 September 2022 4.767%, paid semi-annually Euroclear/Clearstream/LSE Reportable 30/360 T + 2 BNP Paribas, Citi, HSBC, VTB Bank Berlin, Frankfurt, London English Annex A: Supranational Bonds Issues 851 BOAD The West African Development Bank (BOAD), headquartered in Togo, disburses long- and medium-term loans, maintains cooperation relations, and supports the private sector, economic integration and resource-mobilisation services It was founded in 1973 to serve French- and Portuguesespeaking countries in West Africa; it has eight member states In 1994, it became the development agency for the West African Economic and Monetary Union (WAEMU) It has two USD bonds outstanding and a few issues denominated in local CFA francs (XOF) Banque Ouest Africaine de Developpement bond BOAD 5.5% 2021 Bloomberg ticker: BOAD Borrower Issue date Form ISIN Issue size Amount outstanding Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead manager Exchange Governing law Source: Bloomberg Banque Ouest Africaine de Developpement May 2016 Eurobond XS1350670839 US$750mn US$750mn US dollar Min US$200,000/increments on US$1000 Bullet May 2021 5.5%, paid semi-annually Euroclear/Clearstream 30/360 T + 2 BNP Paribas, Deutsche Bank, JP Morgan, Standard Bank Luxembourg English 852 Annex A: Supranational Bonds Issues Banque Ouest Africaine de Developpement bond BOAD 5% 2027 Bloomberg ticker: BOAD Borrower Issue date Form ISIN Issue size Amount outstanding Currency Denomination Amortisation Final maturity date Coupon/interest Method of transfer Day count Settlement period Joint lead manager Exchange Governing law Source: Bloomberg Banque Ouest Africaine de Developpement 27 July 2017 Eurobond XS1650033571 US$850mn US$850mn US dollar Min US$200,000/increments on USD1000 Bullet 27 July 2027 5%, paid semi-annually Euroclear/Clearstream 30/360 T + 2 Citi, JP Morgan, Natixis, Standard Bank Luxembourg English Annex B: Paris Club Terms The Paris Club in an informal group of bilateral creditors who cooperate to resolve unsustainable debt situations in their debtor countries There are 22 permanent members: Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Norway, Russia, South Korea, Spain, Sweden, Switzerland, the UK and the US. Other official creditors can also participate in Paris Club negotiations on an ad hoc basis, subject to the agreement of permanent members and the debtor country The following creditors have participated on an ad hoc basis: Abu Dhabi, Argentina, China, Kuwait, Mexico, Morocco, New Zealand, Portugal, South Africa, Trinidad and Tobago and Turkey Often under an IMF programme, debtor countries implement reforms aiming to ensure long-term debt sustainability through institutions, policies and economic management, while Paris Club creditors provide a debt treatment, such as principal/arrears reduction, reduced debt service payments or extended repayment profiles To date, there have been 433 agreements provided to 90 debtor countries, starting in 1956, when Argentina agreed to meet its public creditors in Paris A total of US$583bn has been treated under the Paris Club framework This involves treatments under one of the following terms: © The Author(s) 2019 Exotix Capital, Exotix Developing Markets Guide, https://doi.org/10.1007/978-3-030-05867-8 853 854 Annex B: Paris Club Terms Paris Club standard terms of treatment Terms Debtor eligibility Classic Any country with an appropriate IMF programme showing the need for Paris Club debt relief Houston Assessed case-by-case by creditors, considering previous PC or IMF engagement, and meeting at least two of the following: (1) low per capita income (below US$2995), (2) high indebtedness (at least two of the following: debt to GDP higher than 50%, debt to exports higher than 275%, scheduled debt service over exports higher than 30%), (3) bilateral debt stock of at least 150% of private debt Naples Assessed on a case-by-case by creditors, considering previous PC or IMF engagement Criteria include high indebtedness, only being eligible for IDA financing from the World Bank and a low per capita income (US$755 or less) Description Credits (ODA or non-ODA) are rescheduled at the appropriate market rate with a case-by-case negotiated repayment profile Non-ODA credits are rescheduled at the appropriate market rate over c15 years with two-to-three years’ grace and progressive payments raising year by year ODA credits are rescheduled at an interest rate at least as favourable as the original concessional interest rate applying to the loans, over 20 years with a maximum 10-year grace period Creditor countries can conduct debt swaps Now replaces the previous Toronto and London terms Non-ODA credits are cancelled to a 67% level Creditors may choose to implement this reduction by various options ODA credits are rescheduled at an interest rate at least as favourable as the original concessional interest rate applying to the loans Creditor countries can conduct debt swaps Cologne Implemented case-by-case, but a Now replaces the previous Lyon terms debtor country must be eligible Non-ODA credits are cancelled up to a 90% for Naples terms, have a sound level or more if necessary in the context of track record with the PC and have the HIPC initiative ODA credits are been declared eligible for rescheduled at an interest rate at least as enhanced HIPC by the IMF and favourable as the original concessional World Bank boards interest rate applying to the loans Creditor countries can conduct debt swaps Evian A new approach for non-HIPC Case-by-case decision to provide debt eligible countries introduced in treatment reflecting the debtor’s financial 2003 It is only granted to needs, to ensure long-term debt countries facing imminent default sustainability If debt is unsustainable, PC This may be due to unsustainable creditors will agree a treatment if the debtor debt or a liquidity problem will seek comparable debt treatment from other external creditors If debt is sustainable, but a liquidity problem exists, a treatment may be designed to avoid default Source: Paris Club .. .Exotix Developing Markets Guide Exotix Capital Exotix Developing Markets Guide Debt and Risk across the Frontier Sixth Edition Exotix Capital Watson House London,... even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors... published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Acknowledgements The Exotix Developing Markets Guide is