Document of The World Bank FOR OFFICIAL USE ONLY R£port No. 2159a-ZR EXTERNAL PUBLIC DEBT OF ZAIRE October 5, 1978 Country Programs II Economic Analysis and Projections Eastern Africa Region Development Policy Staff This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its rontents may not otherwise be disclosed without World Bank authorization. FOR OFFICIAL USE ONLY EXTERNAL PUBLIC DEBT OF ZAIRE TABLE OF CONTENTS Page No. SUMMARY ..... o ............... , ............................ o ••••••• i-ii INTRODUCTION •••••••••••••••••5··~··••••••••••••••••••••••• 1 I. VOLUME AND STRUCTURE OF THE DEBT e&e••••••••••••••••~ti'J••••• 1 A.. Outstanding Debt, Disbursed only and Including Undisbursed ....................................... . 1 B. Commitments .................................. o •• o • 2 1. Type of Creditor •••••••••••••••o•o••••••••• 3 2. Creditor Country ••••••••••••••••••••••••••• 3. 3 Type of Debtor ••••••••••••••••••••••••••o•• 4 4. Sectors .................................. ~ •• 5. 5 Terms ••••e•••••••••o•,••••••••••CJ•••o•••••• c. 7 Disbursements • • • • • • a • • o • • • • • a e a e e a e e o o e a e a o e • o • • 1. 8 Source ••••••••••••••o••••••••••••••••e••••• 8 2. Sector • • e e a e o e e o e • e o e e o 4 A t • e e e e e e e i i O O O O • e • o e e 9 II. DEBT SERVICE, 1970-77 ............. ~•••••••••••••8••••••••• .. 11 A. Volume and Trend of Debt Service Due ............ . B. 11 Evolution and Structure of Debt Service Payments 12 c. Arrears ............. ., ................................. . D. 15 Net Transfers. •••••••••e•••e••••••oooeeaeee•••••• 16 III. DEBT REORGAl~IZATION •••••••••••••••••••••••o•••••••••••••• .. 17 A. Paris Club Agre\ements ••~••••••••••••••••o••.,•••o B .. 17 London Understanding ............................ . 23 IV. PROJECTIONS ....................... ,,. ................ o . . . . . . o • • • • 25 A. The 1977 Situation •••••••••••••••••••••••••••••• B. 25 Prospects in 1978 ••••••••••••••••••o•••••••••••• 26 c. DRS Projections to 1987 ·~·············~··••••••• 26 This report was prepared by William Grau and Elizabeth Bowen, External Debt Division, Economic Analysis and Projections Department, following their participation on a World Bank economic mission which visited Zaire in February 1978. This document has a restricted distribution and may be used by recipients only in the performance of their oft\cial duties. Its contents may not otherwise be d~losed without World Bank authorization. - 2 - ANNEXES I. Definitions II. Debt Management by OGEDEP III. Statistical Tables 1. Standard DRS Tables 1 and 2, as of December 31, 1977 2. Commitments by Debtor, 1970-77 3. Commitments by Economic Sector 4. Comparison of Average Terms: Zaire and Other Low-Income Countries 5. Average Terms of Borrowing By Creditor Country 6. Debt Service Payments and Net Transfers By Type of Creditor 7. Debt Service Payments By Creditor Country 8. Cumulative Arrears at End-1977 By Creditor Country 9. Effect of First and Second Paris Club Agreements on Total Debt Service 10. Outstanding Debt and Projected Service Payments By Creditor Country 11. Disbursement Patterns on Undisbursed Project Balances As of End-1977 12. Future Debt Service Eligible for Rescheduling Under Paris Club, 1977-80, By Credit or Country 13. Debt Service Eligible for Rescheduling Under Paris Club, 1977~80, By Type of gredit IV. US Dollar Exchange Rates for Major Currencies 1970-1977. TEXT TABLES 1. Evolution of Outstanding Debt 1970-77. 2. Structure of Commitments, 1970-77, By Type of Creditor 3. Commitments By Creditor Country 4. Commitments By Type of Debtor 5. Sources of Financing for Major Projects, 1970-77 6. Average Terms Structure By Type of Creditor, 1970-77 7. Average Terms Structure, 1970-76~ Zaire and Other Low-Income Countries 8. Disbursements By Type of Creditor, 1970-77 9. Disbursements By Project and Non-Project Allocation, 1970-77 10. Incremental Debt Service Due in 1973-77 By Year in which Loans Were Contracted - 3 - 11. Incremental Debt Service During 1974-77 Attributable to Borrowing in 1973-74, By Type of Creditor 12. Principal and Interest Payments 1970-77 13. Debt Service Payments, 1970-77, By Type of Creditor 14. Debt Service Payments by Central Government Budget By Type of Debtor 15. Cumulative Arrears on Deb'~~ Service, End of Year 1974-77 16. Actual and Projected Net Transfers of Resources 17. Amounts Rescheduled Under 1976 Paris Club Agreement 18. Amounts and Terms of First Paris Club (June 1976) By Creditor Country 19. Amounts and Terms of Second Paris Club Agreement 20. Effect of First and Second Paris Club Agreements on Total Debt Service 21. Effect of First and Second Paris Club Agreements on Debt Service Due to Paris Club 22. Multilateral Debt Reorganization 1974-77 23. 1977 Debt Outstanding 24. Projected Flow in 1978 25. Projections of Future Disbursements By Type of Creditor 26. Projected Disbursements By Economic Sector 27. Debt Service 1978-87 By Type of Creditor 28. Projected Debt Service By Source of Payment 29. Projected Net Transfers By Type of Creditor Summary i. At the end of 1977, the external public debt of Zaire stood at US$3,537 million of which US$2,623 million was disbursed and outstanding. Cumulative debt service payments in arrears totalled US$378.0 million. Approximately 58 percent of the debt is owed to private lenders on commercial terms. Private bank lending outstanding accounts or 39 percent of the total debt. More than half the debt outstanding is projected to fall due before 1983. ll. Prior to 1973, Zaire maintained a relatively low level of external indebtedness. Total debt outstanding ranged from US$374.0 million at end 1969 to US$715.0 million at end 1972. The maturity structure of the debt was also favorable as more than half was owed to foreign governments on concessional terms and to multilateral lending institutions. iii. Beginning in 1973 this comparatively stable debt profile changed rapidlya External borrowing increased dramatically. The largest increase in the debt occurred between 1973 - 1975. During that period Zaire contracted a total of US$2.6 billion in external loans to finance various manufacturing and infrastructure projects, the latter primarily in the transport and energy sectors. A large proportion of the loans committed in these years were in the form of non-concessional private lending, including large Euro-currency loans from syndicated bank groups (US$600 million)e This contributed to a deteriora- tion of the overall maturity structure of the debt. As early as 1974 arrears of debt service began to accrue; out of a total of US$260.0 million, required in 1975 to service the public debt, Zaire paid only 60 percent. By the end of 1975 cumulative debt service in arrears reached US$104 million most of which was owed to private creditors. iv. To alleviate the growing repayment difficulties, Zaire began re- scheduling negotiations with the Paris Club in late 1975. A first agreement was reached in June 1976 under which the eleven Paris Club countries partici- pating agreed to consolidate and reschedule over a 9-year period most unpaid maturities due on their credits up to the end of 1976. The total amount of the consolidation (US$211.3) was equivalent to about 41 percent of the total debt service payment due in 1976. A second rescheduling agreement was reached in July 1977 with the same Paris Club countries for the consolidation and rescheduling, also over a 9-year period, of maturities due on their credits in 1977 (US$202.0 million)~ By the end of 1977, however, this agreement was implemented by only three Paris Club countries, and bilateral negotiations with the other countries were still in progress. v. Parallel to the negotiations within the Paris Club, Zaire also requested additional financing from syndicated bank groups to alleviate its payments difficulties. At the end of 1977 the debt to these banks amounted to US$581.0 million of which US$180.0 nrl.llion in arrears. These negotiations took place in November 1976duringwhich it was tentatively agreed that, con- tingent to certain conditions, the group of banks would attempt to syndicate a further loan to Zaire of US$250.0 million. As of now, however, this loan has not materialized. - ii - vi. This report does not attempt to analyze the causes or the con- sequence of Zaire's debt service problems. This aspect will be addressed in the forthcoming economic report. INTRODUCTION 1. The purpose of this report is to present a factual analysis of the external public debt of Zaire !/ -- its evolution, current status and structure --with projections of disbursements and debt service up to the year 1987. These data will be studied against the economic and financial background, as well as the prospects of Zaire in a forthcoming economic report. The statis- tical basis for the analysis derives primarily from data gathered by a World Bank economic mission which visited Zaire in February 1978. The historical series prior to and including 1975 comprise data collected by previous ex- ternal debt missions to Zaire, as well as reports from the Directorate of the Treasury and the Bank of Zaire. Information on the status of the debt as of the end of 1976 and 1977 was provided by the Zairian Office for Public Debt Management (OGEDEP); these were supplemented where appropriate by data from the Treasury and the Bank of Zaire. Information on the Paris Club rescheduling agreements of 1976 and 1977 was obtained from various sources including OGEDEP and the export credit insurance agencies of governments participating in the Paris Club negotiations. '!:._/ 2. The task of establishing an up-to-date and accurate record of Zaire's external debt is a complex, tedious and lengthy undertaking which is continuing. It is possible that future work will reveal discrepancies in the data on individual loans. However, we feel that the coverage of the statistics at our disposal, including supporting material from creditor sources, is sufficiently complete to assure that future revisions in the data base will not materially affect the results of the analysis presented below. 3. Unless otherwise indicated, all amounts are expressed in millions of US dollars. l/ In this report external public debt comprises all long-term borrowing repayable in goods or in foreign currencies which is committed either by the public sector or by the private sector with public guarantee. It thus excludes certain debts which can be relevant in the case of Zaire, such as short-term indebtedness, delayed tranfer payments and IMF credit facilities. It also excludes unguaranteed private borrowing, i.e., "private debt",which in Zaire is not believed to be significant. See Annex 1 for a further definition. '!:._/ The members of the Paris Club for Zaire were: Belgium, Canada, France, Federal Republic of Germany, Italy, Japan, Netherlands, Sweden, United Kingdom, and United States. - 2 - I. VOLUME AND STRUCTURE OF THE PUBLIC DEBT A. Outstanding Debt, Disbursed Only and Including Undisbursed l/ 4. On December 31, 1977, the outstanding debt (including undisbursed) of the Republic of Zaire was US$3,537 million - nearly six times the average level during the period 1970-·72. Table 1 shows that the largest increase took pl~ce in 1973 and 1974 when the amounts outstanding rose by about US$1 billion per year. During the following three years (1975-77), however, Zaire's total outstanding debt rose by only US$300 million per annumo The annual rate of increase thus slowed considerably, reflecting the reduced levels of loans contracted by Zairian debtors in the recent past. Table 1: EVOLUTION OF OUTSTANDING DEBT, 1970-77 (in US$ million~ end of year) 1970-72 Debt Outstanding Average Level 1973 1974 1975 1976 1977 Incl. Undisbursed 610.8 1,750.8 2,676.8 3,008.3 3,305.6 3,536.8 Disbursed Only 400.6 862.3 1,294.6 1,655.1 2,168.8 2,632.8 Undisbursed 210 .. 2 888.5 1,382.2 1,353.2 1,136.8 904.0 5. Increases in the level of disbursed debt~/ were more or less consistent over the period, averaging about US$420 million in each year 1973-77, with the largest increases in 1976 and 1977. To a large extent, this trend reflects two factors: 1) the time lag which exists between a loan commitment and the disbursement of funds and 2) decreases in actual debt service paid by Zaire from 1975-77. B. Commitments l/ 6. The evolution of the total outstanding debt sketched above resulted to a large extent from changes in the volume of commitments during 1973-74 1/ Outstanding debt including undisbursed is the cumulative amount of contracted loans, minus repayments of principal and cancellations. It includes amounts which have been committed but not yet disbursed. ~/ Disbursed debt is the cumulative amount of disbursements minus principal repayments. Commitments as used in this report represent the amount, net of downpay- ments, of the loans contracted. - 3 - which jumped from an average of US$185 million in 1970-72 to about US$1 billion in 1973-74. This is understandable because the bulk of the debt was incurred in those years and relatively little repayment took place thereafter. Commitments to Zaire during the 1970-77 period totaled US$3.7 billion. 1. Type of Creditor 7. Table 2 traces the levels of commitments by major creditor type during the 1970-77 period. In 1973 and 1974, when the largest increase in total debt took place, private credits accounted for about 70 percent. In the next two years commitments were cut by about half, and by 1977 they fell to US$162 million (less than l.n the early 70's). Although the decline reflected lower lending from all sou~ces, the most significant drop took place in private lending which shrank from an average of US$700 million per annum in 1973-74 to less than US$20 million in 1977. In 1977, 88 percent of all commi. tments were from officia~. sources. STRUCTURE OF COMMITMENTS, 1970-77, BY TYPE OF CREDITOR (in US$ million) 1970-72 1977 T~:I~e of Creditor Average % 1973 1974 1975 1976 Amount % Total 184.8 (100 .. 0) 1,104.6 970 .. 8 513.5 422.2 161.7 (100.0) Private Credits 140.8 (76 .. 2) 803.6 645.7 235.3 184.0 19.3 (11.5) Suppliers 58.2 (31.5) 252.6 159.9 132.6 40.5 12.2 (7.5) Total Banks 82.6 (44.7) 551.0 485.8 102.7 143.5 7.1 (4.4) (Synd. Banks) 1/ (57.7) (31.2) (259.8)(204.2) (5.1) (17.1) Official Credits 44.0 (23.8) 301.0 325.1 324.5 190.6 142.4 (88.1) Multilateral 24~ (13.4) 12.4 38.1 153.9 67.5 19.3 (11.9) Bilateral 19.3 (10.4) 288 .. 6 287.0 170.6 123.1 123.1 (76.2) !/ Portion of private bank credits reprEsented by syndicated bank lending. 2. Creditor Country 8. Three creditor countries accounted for about 50 percent of all commitments over the 1970-77 period: the United States for 23 percent, France for 18 percent, and Italy for 8.5 percent (see Table 3). Other countries which figured prominently in total commitments were the Federal Republic of Germany, Belgium and the United Kingdom, each with US$250-300 million during the period. Loans from multilateral institutions, of which the World Bank Group represents nearly 80 percent, totaled US$365 million; more than half of this amount was committed in 1975-76. - 4 - Table 3: COMMITMENTS BY CREDITOR COUNTRY Ll (In US$ million) Total Total 1970-1977 Creditor Country 1970-72 1973 1974 1975-76 1977 Amount % share TOTAL 554.5 1,104.6 970.8 935.7 161.7 3,727.3 (100.0) --- --- - -- Belgium 54.6 157.2 .5 38.3 5.6 256.2 (6.9) Canada 4.9 36.0 49.6 3.3 13.5 107. 3il_ (2.9) China 100.7 100 .. 7 {2.7) France 35.1 162.8 215.6 191.6 60.0 665.1fl. (17.8) Germany, F .R. of 54.9 72.2 14.1 138.7 r, 9 .. L. 289.1 (7.8) Italy 84.8 83.6 70.0 80.2 318.6 (8.6) Japan 5.4 127.0 9.8 .4 142.6/4 (3.8) Libya 100.0 100.0- (2.7) Netherlands 25.2 60.2 2.3 6.0 93.7 (2.5) Sweden 42.6 42.6 (1.1) UAE 50.1 50.1 (1.3) United Kingdom 20.7 221.5 3.5 3.5 249.2 (6.7) United States 212.2 70.1 412.7 120.9 48.1 864.0 (23.2) Int'l Organizations 74.2 12.4 38.1 221.5 19.3 365.5 (9 .. 8) of which: IBRD 100.0 100.0 (2.7) IDA 48.0 8.5 10.0 102.5 18.0 187.0 (5.0) Others 7.7 35.9 4.0 35.0 82.6 (2.2) /1 For syndicated bank cr.edits, country of origin is determined by the nationality of the lead bank. /2 Including US$51.7 million of undrawn credit balances cancelled during 1976. /3 Including refinancing loans of US$38.1 million and of US$44.0 million ~x ·~ded under the First and Second Paris Club meetings, respectively. /4 Inl~uding a loan of US$126.9 million committed with the Overseas Economic Cooperation Fund in 1973 which was still undisbursed at the end of 1977. The agreement for this loan was revised in 1978. 3. Type of Debtor 9. About US$2 billion, or 55 percent of total commitments during 1970-77, were extended to the Central Government 1/ (see Table 4). Debt contracted by public corporations accounted for aimost all the remaining US$1.7 billion. However, this division of commitments between the government and public enterprises do~s not accurately reflect the debt service burden supported by each of them. Of the debt contracted by public enterprises, 45 percent is repayable by the central government budget, bringing the portion of total commitments to be serviced by the Zairian government to 74 percent. (See Annex III, Table 2 for details of commitments by individual debtor.) };j In this analysis, "central government" includes ministries, called departments in Zaire, as well as other official agencies. It excludes SOFIDE, Zaire's official development bank. - 5 - Table 4: COMMITMENTS BY TYPE OF DEBTOR (In US$ million) Total Total Total Budget/Debtor 1970-72 1973 1974 1975-76 1977 Amount % share TOTAL 554.5 1!104.6 970.8 935.7 161.7 3~)'27.3 (100 .. 0) Central Gov't Budget 1/ 361.7 977.0 733.4 547.8 139.2 2,759.1 (74.0) Direct Gov't !:_/ 271.4 805.3 476.0 364.6 131.1 2,048.4 (55.0) Public Corps 90.3 171.7 257.4 183.2 8"1 710.4 (19.0) Not Central Gov't Budget'}_/ 192.8 127.6 237.4 387 .. 9 22"'5 968.2 (26.0) Off. Dev~l. Bank !!_/ 16.8 2 .. 5 10.0 7.8 15 .. 3 52.4 (1.4) Public Corps 176.0 125.1 227.4 380.1 7.2 915.8 (24 .. 6) 1/ Commitments with re~ayment through central government budget. 2/ Includes direct debt of the government, its departments and all govern- ment agencies. '}_/ Commitments with a public guarantee not repayable through the central government budget. 4/ Societe Financiere de Developpement (SOFIDE). 4. Sectors 10. Transportation and electrical power production, received over 50 percent of all loans contracted from 1970 to 1977 (see Annex III, Tabl~ 3). The amount destined for the transport sector (US$960 million) was contracted by several borrowers, both government agencies and enterprises, and financed such varied projects as railroads, highways, water transport systems, air- ports, as well as purchases of aircrafts and ships. The amount committed for electric power production (US$910 million), however, was contracted entirely by one public enterprise, the Societe Nationale de l'Electricite (SNEL).. The bulk of these funds financed the Inga and the Inga-Shaba projects which entailed the construction of hydro-electric power plants and associated installations (a network of transmission lines) in the Shaba province. 11. The mining and communications sectors also received a relatively large portion of total commitments.. The Societe Generale des Carrieres et Mines (GECAMINES) coatracted the full amount of US$264 million in loans to the public sector for copper mining operations in the Shaba province. Telecommunications systems financed by the Office Congolais des Pastes et Telecommunications (OCPT) and the Voix du Zaire project of the Orientation Nationale !/ were the major recipients of the US$240 million in commitments !/ A Zairian government agency. - 6 - to the communications sector. External borrowing for agricultur2 projects totaled only US$75 million (2 percent of the total) over the period. Projects financed include coffee production, livestock development and forestry. More than 50 percent of the agriculture credits were contracted in 1973; the remainder were committed during 1975-77. Table 5 shows the sources of ex- ternal financing for the major projects undertaken in Zaire from 1970-77. Table 5: SOURCES OF LOAN COMMITMENTS FOR MAJOR PROJECTS, 1970-77 (In US$ million) Total Project/Debtor Suppliers Banks Multilateral Bilateral Amount % share Inga-Shaba/SNEL 267.0 419.7 8.8 213.8 909.3 (24.4) Air Transport/ Air Zaire, Govt. 91.2 325.2 74.5 /i-92. 0 (13.2) Water Transport/ ONATRA, CMZ 53.1 56.6 38.0 141.4 289.1 (7.7) Mining/GECAMINES 10.9 4.9 138.2 110.0 264.0 (7.1) Telecommunications/ OCPT, Orient. Nat'l 35.2 135.9 4.0 64.8 239 .. 9 (6.4) Food, Bev. Manuf./ Various Enter- prises 17.9 44.4 100.7 163.0 (4.4) Highways/Gov't. 0.5 27.0 21.8 100.5 (2.7) Iron and Steel Prod./SIDERNA 49.0 51.0 100.0 (2.7) Agriculture, Live;.s.tock/Gov't. 3.4 28.2 17.4 25.5 74.5 (2.0) Water Supply/ REG IDE SO 32.4 39.3 71.7 (1.9) Railroads/Gov't., Ste. Chern. Fer 27.3 18.6 15.8 61.7 (1 .. 7) CCIZ 1//Min .. of Commerce 30.0 48 .. 4 (1.3) Other Project and Non-Project 198.5 363.0 68 .• 6 283.2 913 .. 2 (24.5) TOTAL COM11ITMENTS 772.4 1,537.9 365.5 1,051.5 3, 7 27. 3 ( 100.0) l/ Centre Commercial International du Zaire (Zaire World Trade Center). - 7 - 12. Military expenditures and balance of payments support both figured largely in global commitment amounts, ranking third and fourth in sectoral allocation. Of the US$280 million in commitments for military expenditures, about 60 percent, or US$165 million, was contracted in 1973-74, primarily from suppliers and private banks. The Ministry of Finance contracted at least one large loan each year from 1970 to 1975, for a total of US$270 mil- lion, for balance of payments support. Of this amount, US$185 million was borrowed between 1970 to 1973 from syndicated bank groups. (See Annex III, Table 3 for details of commitments by sector). 5. Terms 13. The "average terms" structure of commitments to Zaire by major creditor type is summarized in Table 6. During the period 1970-73, average terms moved slightly in favor of Zairian debtors, resulting in an increase in the aggregate grant element in 1973, the year in which commitments rose most markedly. Table 6: AVERAGE TERMS STRUCTURE BY TYPE OF CREDITOR, 1970-77 1_/ Average Terms 1970-72 1973 1974 1975 1976 1977 Interest (%) 6.8 6 .. 3 7.5 6.2 6.2 4.2 Suppliers 7.1 6.9 7.5 6.3 8.0 8.4 Banks 8.6 8~4 8.1 (Synd. banks) !:_/ 8.1 7.5 6 .. 9 (9.3) (9 4) 0 (8.8) (9. 6) (9.4) Multilateral 2.7 2.3 7.0 5.5 1.8 1.1 Bilateral 3.6 2.1 6.6 5.3 6.3 4.1 Maturity Clears) 13.6 14.5 12.7 16.1 17.1 22.4 Suppliers 9.6 8.5 9.9 Banks 11.6 7.8 8.3 7.0 10.6 10.4 9.3 9.9 (Synd. banks) 12.2 (6.3) (9. 2) (9.3) (5. 0) (5. 3) Multilateral 37.2 39.8 25.6 Bilateral 26.5 42.2 47.0 23.3 26.0 16.5 13.7 15.5 20.6 Grace (years) 3.6 4.4 4.6 Suppliers 4.6 3.7 5.1 2.6 1.7 2.1 3.9 ..., Banks • I 1.3 2.2 3.2 3.5 4.2 2.8 (Synd. banks) 2.8 (1.9) (3.1) (3.4) (3. 2) (1. 8) Multilateral 8.6 8.0 6.1 6.2 8.6 9.3 Bilateral 5.7 8c8 7.5 3.7 3.0 4.9 Grant Element (%) 18.5 22.6 13.3 22.8 23.8 40.3 Suppliers 11.3 10.7 9.0 Banks 16.3 6.1 5.3 4.7 7.1 8.3 9.0 10.6 (Synd. banks) 15.2 (1.4) (1.7) (4.5) (0. 5) (1.1) Multilateral 62.5 65.3 25.6 35.0 70.5 78.9 Bilateral 42.8 60.9 22.6 25.8 21.1 39.1 1/ See Annex I for definitions. 2/ Reflects implicit interest rates computed as a ratio between interest payments due and the outstanding balance of loans at the end of each year. On the average syndicated bank loans were contracted with a spread of 1.6 percent above the London Inter-Bank Offer Rate (LIBOR). - 8 - 14. In 1974, however, when the level of commitments was still high, the tenns of borrowing hardened considerably. This deterioration in terms is attributable primarily to multilateral and bilateral lending at non- concessionary interest rates and shortened maturities. In 1975-76, while the level of commitments fell rapidly, the average terms and grant element returned to the more favorable levels of 1973. In 1977, the aggregate grant element was about twice that of any other year during the period, due to low levels of private lending and a softening of terms for multilateral and bilateral lending. (See Annex III, Table 5 for average terms of borrowing by creditor country). 15. It is interesting to compare Zai-e's average terms of borrowing with those of other low income countries. For every year from 1970-76 the terms of lending to Zaire were consistently harder than the average terms for 30 countries with GNP per capita of less than US$250 in 1976 (See Annex III, Table 4). In fact, the aggregate grant element for the comparison group was on the average a little over three times larger than that of Zaire. Table 7: AVERAGE TERMS STRUCTURE, 1970-76, ZAIRE AND OTHER LOW-INCOME COUNTRIES 1/ Average Terms Interest Rate Maturity Grace Grant Element 1970-76 (%) (yrs.) Cyrs) (%) Zaire 6.9 14.9 4.4 20.6 Low-income Group 2.6 30.7 7.8 57.2 1/ These countries comprise the low-income group cited in World Development Indicators, a World Bank publication, June 1978. Zaire belongs to this group. C. Disbursements 1/ 1. Source 16. 0f the US$3.7 billion in loan commitments to Zaire from 1970-77, aboat US$2.9 billion was disbursed before December 31, 1977, and the out- standing balance, disbursed only, was US$2,633 million on that date. 2/ As 1/ Disbursements consist of the delivery of cash, goods or services by the creditor, which converts the pledge or commitment into a liability for the debtor. 2/ The disbursed outstanding balance is the sum of all disbursements minus cumulative principal repayments. Consequently, it excludes undisbursed amounts. - 9 - Table 8 shows, in every year prior to 1977, more than 60 percent of all disbursements were from private creditorHe Private flows reached their highest levels during 1973-74, the same period during which commitments from private creditors rose most rapidlyo Disbursements of bank credits averaged US$250 million in both years, or over 55 percent of total flows, with syn- dicated banks accounting for the largest portion. Table 8: DISBURSEMENTS BY TYPE OF CREDITOR~ 1970-77 (In US$ million) 1970-72 % share Ty:ee of Credit Total % share 1973 1977 1974 1973-74 1975 1976 Amount % share TOTAL 456.5 (100.0) 585.1l1448 .. 8~/(100.0) 365.2 524.3 (100.0) 500.0 Suppliers 168.1 (36.8) 86 .. 6 134 .. 1 (24 .. 8) 82.8 108 .. 7 75.9 (16.9) Banks 208.7 (45.7) 246.0 254.1 (56.2) Z31 .. 3 248.5 102.8 (21.2) (Synd. Banks) (169.3) (37.1) (200.7) (90.6) (32 .. 7) (32 .. 3) (90.2) (30.7) (6. 8) Multilateral 27.3 (6.0) 17.3 13.4 (3 .. 5) 24.3 39.8 64.5 (14.4) Bilateral 52.4 (11.5) 15 .. 4 122.7 (15.5) 161.6 188.0 205.6 (45.8) ll 1976 disbursements include US$52.6 million of capitalized interest and a French refinancing loan of US$38.1 million as a result of debt reorgani- zation within the Paris Club. 2/ 1977 disbursements include US$6.5 million of capitalized interest and a French refinancing loan of US$44.0 million as a result of debt reorgani- zation within the Paris Club. 17. Disbursements to Zaire did not begin to decline until 1977, when they dropped by about US$100 million from the 1974-76 levels, due to substan- tially lower flows from private creditors, particularly banks. Disburs~::nents on private credits decreased sharply from an average of US$345 million in 1973-76 to US$180 million in 1977 as a direct result of the declining levels of private lending which began in 1975. This decline was partially compen- sated by an increase in multilateral and bilateral flows which, in 1977, amounted to US$270 million compared to US$145 million average per annum in 19'73-76. 2. Sector 18. The sectoral allocation of disbursements during 1970-77 is given in Table~9. Project financing was by far the largest component of the flows to Zaire and accounted for more than 75 percent of total disbursementsc Two sectors alone, transport and electrical power production, absorbed about - 10 - 60 percent of this financing. Disbursements to the transport sector were largely concentrated in the years 1973-75, while the bulk of aid to SNEL for its hydro-electric power plants and distribution systems was disbursed from 1974-77. Agriculture received only 1 percent of totdl disbursements during these years; financial flows to agricultural projects were primarily con- centrated in 1976-77. Table 9: DISBURSEMENTS BY PROJECT AND NON~PROJECT ALLOCATION, 1970-77 (In US$ million) Total Total 1970-77 1970-72 1973 1974 1975 1976 1977 Amount % share 456.5 365.2 524.3 500.0 585.1 448.8 2,880.0 (100.0) TOTAL . A.d 1/ 288.2 260.0 447.4 411.9 420.9 360.9 2,189.3 (76.0) P roJect l - (25.6) Transport 87.9 137.5 261.8 147 .. 0 63.9 38.4 736.5 Electrical Prod. 42.4 32.8 129.8 135.9 179.2 128.1 648.2 (22.5) 18.8 4.4 6.2 42.4 48.7 82.7 203 .. 2 (7 .1) Mining Food/Bev Manuf. 1.6 3.4 3.2 21.6 51.5 80.7 162.0 (5.6) Communication 34.5 1.0 17.9 41.3 29.0 11.7 135.4 (4.7) Iron and Steel 41.4 28.1 16.9 1.9 88.3 (3.1) Construction 30.0 49.1 (1.7) Cement/Glass 32.0 .8 32.8 (1.1) Agriculture 4.3 .7 1.0 14.0 6.8 26.8 ( • 9) Other 29.6 17.7 10.9 3.6 32.7 12.5 107.0 (3.7) Import Financing, Not Project- Related 43.3 43.4 71.0 29.9 38.0 23.9 249 .. 5 (8.7) Food Aid 12.3 4.1 3.0 .2 9.5 29.1 (1.0) 31.0 39.3 68.0 29.7 28.5 23.9 220.4 (7. 7) Other 2:._/ Cash Receipts 125.0 61.8 5.9 58.2 126.2 58~5 435.6 (15.1) ---BO_P __S_u_p_p~o-rt~------12~5~.~0-----6~0~.~0-----~--~5~0~.3~~3~5~.~0--~2~.~8----2~7~3~.~1--~(~9:5) Debt Reorgan. 3/ 90.9 48.2 139.1 (4.8) Admc Budget Supp. 1.8 5.9 7.9 .3 7.5 23.4 ( .8) l/ Some portion of the project aid may be in the form of cash receipts, although the relative magnitudes of these two major categories of aid are fairly well reflected in the table. 2/ Military Aid. 3/ Comprises refinancing loans and capitalized interest as a result of the debt reorganization within the Paris Club • 19. Although the allocation of project aid in 1976-77 was still heavily in favor of the two largest sectors mentioned above, an important shift in the flor"7 of disbursements took place as 70 percent of the remaining disburse- ments went to food and beverage manufacturing and to the copper mining enter- prise, GECAMINES. Telecommunications received about 10 percent of the re- mainder and agricultural production absorbed about 6 percent. - 11 - 20. More than 60 percent of cash receipts from 1970-77 were disbursed to the Zairian Ministry of Finance for balance of payments support. Debt reorganization accounted for 33 percent of cash flows in the form of refi- nancing loans from the Bank of France and capitalization of overdue interest payments in accordance with the Paris Club rescheduling agreements of June 1976 and July 1977. The Zairian government received administrative budget support in the amount of US$23.4 million from 1970-77 for such purposes as administration of government housing, health and other social service pro- grams. II. DEBT SERVICE, 1970-77 A. Volume and Trend of Debt Service Due 21. The dramatic increase in Zaire's foreign borrowing during 1973-74 inevitably led to a rapid increase in debt service obligations in the last few years. For example, more than half of the debt service payments due in 1975 were due to loans contracted in 1973-74, and those due in 1976 nearly tripled (from US$108.4 million to US$306.2 million) for the same r·2ason (see Table 10). Table 10: INCREMENTAL DEBT SERVICE DUE IN 1973-77 BY YEAR IN WHICH LOANS !AERE CONTRACTED (In US$ million) Debt Service 1973 1974 1975 1976 1977 Owed on: Loans contracted up to 12/72 86.4 115.4 120.6 108.4 96.1 Loans contracted in 1973 52.3 87.3 118.7 148.7 Loans contracted in 1974 44.9 83.6 113.2 Loans contracted in 1975 -4.5 l/ 7.3 Loans contracted in 197'6 9.7 TOTAL Debt Service Due: 86.4 167.7 252.8 306.2 375.0 !/ Decline in projected payment due to exchange rate differential. - 12 - 22. Indeed, approximately 98 percent of the incremental rise in debt service from 1974-77 occurred as a result of borrowing in 1973 and 1974; the remaining 2 percent was accounted for by borrowing during 1975 and 1976 (see Table 10)~ Official loans committed in 1973-74 accounted for 10 percent only of the increment in debt service while private bank credits accounted for 58 percent (see Table 11). Although official lending increased substantially in 1973-74, its effect on debt service began to appear 3-4 years later because of longer amortization and grace periods. Table 11: INCREMENTAL DEBT SERVICE DURING 19 71+-,77 ATTRIBUTABLE TO BORROWING IN 1973-74, BY TYPE OF CREDITOR (In US$ million) Incremental Debt Service % share of due to 1973-74 Borrowing Cumulati-Je 1974 1975 1976 1977 Increment TOTAL 52 .. 3 132.2 202.3 261.9 (100.0) Due to Private Bank lending 26.4 67.4 117.5 162.3 (57.6) (Synd. Banks) (20.4) (39.7) (67.6) (91.5) (33.8) Due to Suppliers Credits 24.0 53.0 65.0 68.4 (32.4) Due to Official Lending 1.6 11.7 19.8 31.2 (10.0) B. Evolution and Structure of Debt Service Payments 23. Actual payments of debt service increased in absolute terms during the early seventies, reaching a peak of about US$190 million in 1974. Thereafter, they decreased steadily through 1977. In relative terms, the proportion of debt service obligations paid declined from 61 percent in 1975 to 41 percent in 1976 and 31 percent in 1977~ The share of interest in actual payments increased from 25 percent in 1970-72 to 57 percent in 1977 (see Table 12). - 13 - Table 12: PRINCIPAL AND INTEREST PAYMENTS, 1970-77 (In US$ million) 1970-72 1977 Amount % share 1973 1974 1975 1976 Amount % share Total Due 135.2 ( ) 86. gll 167.71../ 252.8 306.2 375.0 ( ) Total Paid 135.2 (100.0) 93.3 189.4 154.7 127.2 117.5 (100.0) (% paid) (100.0) ( - ) (107.3) (112.9) (61.1) (41.5) (31. 3) ( - ) Principal 101.5 (75.1) 59.4 125.5 92.9 65.5 50.5 (43.0) Interest 33.7 (24.9) 33.9 63.9 61.8 61.7 67.0 (57.0) l/ Actual payments may differ from service due owing to a variety of reasons. The most important ones are the incurrence of arrears and the reschedul- ing of specific maturities. Others stem from delays in transferring foreign exchange, actual disbursements and interest payments being different from projected ones, exchange rate differentials, etc. 24. For all years 1970-77, private creditors received more than 80 percent of all payments, with suppliers taking the largest percentage in the first five years. During the last three years of the period, the share of private banks increased to about 55 percent of the total (see Table 13). Annex III, Table 6 shows that, for private banks, interest payments exceeded amortization of principal in each year beginning with 1973; in 1977, no principal payments were made at all to syndicated banks. This reflects in part the high interest rates on private bank lending which accrued during the grace period (i.e., when no amortization payments were due) and the partial or complete suspension of principal payments on bank loans. Table 13: DEBT SERVICE PAYMENTS, 1970-77, BY TYPE OF CREDITOR (In US$ million) 1970-72 1977 Type of Total Creditor Amount % share 1973 1974 1975 1976 Amount % share Total 135.2 (100.0) 93.3 189.4 154.7 127.2 117.5 (100.0) Private Creditors 109.4 (80.9) 82.1 168.0 134.5 104.4 98.9 (84.2) Suppliers 88.5 (65.5) 47.7 89.4 59.4 46.6 34.8 (29.6) Banks 20.9 (15.4) 34.4 78.6 75.1 57.8 64.1 (54.6) (Synd. Banks)(l5.0) (11.1) (27.0) (63.0) (57.0) (23.6) (25.0) (21.3) Official Creditors 25.8 (19.1) 11.1 21.4 20.2 22.8 18.6 (15.8) Multilateral 4.8 (3.6) 1.2 8.0 6.2 8.5 9 .. 4 (8.0) Bilateral 21.0 (15.5) 9.9 13.4 14.0 14.3 9.2 (7.8) - 14 - 25. Two creditor countries, the United States and France, received more than half of the US$820 mill~on in debt service payments from 1970-77. Another 25 percent represented payments to Italy, the FeR. of Germany and the United Kingdom. Belgian creditors ranked sixth in order of debt service payments. (See Annex III, Table 7.) 26. Debt service paid directly through the central government budget averaged about two-thirds of the total from 1970 to 1974 and 78 percent during the last three yearse Service on the direct debt of the government, its departments and agencies represented 75-85 percent of payments made through the central budget; the balance consisted of debt service paid on behalf of public corporations. Of the US$330 million in debt service payments made by public corporations from 1970-77, about 30 percent was financed through the central government budget; the figure for 1977 was 40 percent (see Table 14). Table 14: DEBT SERVICE PAYMENTS THROUGH CENTRAL GOVERNMENT BUDGET BY TYPE OF DEBTOR (In US$ million) 1970-72 1977 Total % share 1973 1974 1975 1976 Amount % share Total 135.2 (100.0) 93.3 189J4 154.7 127,2 117.5 (100.0) Central Gov't Budget 89.9 (66.5) 60.3 131.2 121.8 92.5 91.2 (77.6) Direct Gov't 64.8 (47.9) 49.3 111.0 103.4 80.3 76.0 (64.7) Public Corps 25.1 (18.6) 11.0 20.2 18.4 12.2 15.2 (12.9) Not Central Gov't Budget 45.3 (33.5) 33.0 58.2 32.9 34.7 26.3 (22.4) Off. Devel. Bank (- ) 0.1 0.1 (0.1) Public Corps 45.0 (33.3) 31.9 57.0 32.6 33.2 25.5 (21.8) Priv. Corps 0.3 (0.2) 1.1 1.2 0.3 1.5 0.6 (0.5) 27. About 20 percent of payments over the period 1970-77 represented service on the debt of the Republic of Zaire as such. 1/ The Ministries of Finance, Defense and Transport accounted for another 20 percent. Some public corporations which figured substantially in total debt service are SNEL, 1/ Central government debt with no departmental or agency designation. - 15 - GECAMINES and Air Zaire, with combined payments of about 20 percent of the total. The debt service of Air Zaire was paid entirely through the central government budget and that of GECAMINES entirely by the enterprise; about 35 percent of SNEL's debt service was financed through the central government budget. C. Arrears 28. The high volume of borrowing in 1973-74, followed by a foreign exchange crisis in 1974-75 (partly as a result of a drop in the price of copper, Zaire's chief source of export earnings), led to serious difficulties on the part of Zairian borrowers in meeting their debt service obligations. Arrears began to accumulate for the first time during 1974, and they reached a large amount in 1975. Out of a total of $260 million required in 1975 to service the long-term public debt, Zaire paid only 60 percent. By the end of 1975, cumulative debt service in arrears on public external debt reached $104 million of which 94 percent was due to private creditors (see Table 15). Table 15: CUMULATIVE ARREARS ON DEBT SERVICE, END OF YEAR 1974-77 (In US$ million) Private Creditors Suppliers and Non-Syndicated Syndicated Official End-Year Bank Credits Bank Credits Creditors Total 1974 4.6 2.1 6.6 Principal 0.8 2.1 2.8 Interest 3.8 3.8 1975 66.0 32.2 5.9 104.0 Principal 48.7 24.6 2.5 75.7 Interest 17.3 7.6 3.4 28.3 1976 36.4 88.3 2.9 127.6 Principal 24.0 63.4 0.6 88D0 Interest 12.4 24.9 2.3 39.6 1977 };_/ 148.0 179.8 49.7 377 .. 5 Principal 97.4 141.7 29.0 268.0 Interest 50.6 38.1 20.7 109.5 l/ Including US$115 million of 1977 maturities eligible for rescheduling under the Second Paris Club but for which bilateral agreements were still not signed at the end of 1977 with Paris Club countries. - 16 - 29. The figures in the above table represent cumulative arrears after taking into account the two Paris Club debt reorganizations of 1976 and 1977. These agreements with the Paris Club Countries had the effect of reducing the level of arrears on credits affected by the debt reorganization for each of the two years. If, however, such arrangements with the Paris C1ub had not taken place, arrears would have increased by US$186 million in 1976 and by US$87 million in 1977. At the end of 1977, total cumulative arrears would have reached about US$651 million. (See Annex III, Table 8 for a breakdown of cumulative arrears as of the end of 1977 by creditor country). D. Net Transfers 30. The transfer of net resources 1/ to Zaire on account of transac- tions on external public debt increased from US$335 million in 1974 to about US$460 million in 1976 and declined to about the 1974 level during the fol- lowing year (see Table 16). The significant reduction in resources available to the Zairian economy was entirely due to a dramatic drop in net transfers from private creditors which amounted to only US$80 million in 1977, about one-third the 1974 level. In fact, if Zaire had not rescheduled under the Paris Club a portion of its obligations to private creditors (those insured or guaranteed) nor incurred substantial arrears toward private banks, other things being equal, a net outflow of about US$250 million would have taken place in 1977 on account of its transactions with private sources of finance. Another factor which contributed, although to a lesser extent, to prevent a more serious decline in the availability of external resources was the significant increase in net transfers from official creditors which, since 1974, have doubled to attain US$252 million in 1977. It is interesting to note that during the years of the foreign exchange crisis (1974-77) Zaire was able to increase its financial resources by about US$600 million due to the combined effect of reschedulings and accumulation of arrears, mostly owed to private creditors. 1/ Net transfers consist of disbursements minus debt service payments. - 17 - Table 16: NET TRANSFERS OF RESOURCES 1/ (In US$ million) Private (Syndtcated Official Creditors Banks) Creditors Total 1970-72 267.4 (154 .. 3) 53.9 321.3 1973 250 • .J (173.7) 21.6 272.1 1974 220.0 ( 27.6) 115.0 334.9 1975 179.5 (-24.7) 165.8 345.3 1976 252.6 ( 66.6) 205.3 457.9 1977 79.8 ( 5.7) 251.5 331.3 Total 1,248.8 (403.2) 813.1 2,062.8 !/ Net transfers are equal to d~sbursements minus debt service payments (for details see Annex III Standard DRS Table 2 as of December 31, 1977). III. DEBT REORGANIZATION A. Paris Club Agreements 31. In response to the repayment difficulties experienced by Zaire, the Paris Club countries (see p. 1, footnote 1, for a list of the members) began negotiations for the consolidation and rescheduling of unpaid maturi- ties, largely on commercial credits covered under official export insurance. An initial agreement was reached between Zaire and the Paris Club countries in 1975, but the terms of this agreement were renegotiated in June 1976. The 1976 general accord provided for the rescheduling of payments on eligible credits contracted before January 1, 1976. The amounts consolidated consisted of maturities falling due between January 1, 1975, and June 30, 1976, which remained unsettled as of the date of the agreement, as well as principal payments due between June 30 and December 31, 1976. Interest payments due in the second half of 1976 were to be paid according to the original debt service schedules. 32. The general accord set the guidelines for the terms of the re- scheduling and provided for repayment of the consolidated amounts in two portions: (a) 15 percent repayable in two equal tranches in July 1977 and 1978 and (b) 85 percent repayable in fourteen equal semi-annual payments, - 18 - beginning in January 1978 for maturities which fell due in 1975, and in January 1979 for 1976 maturities. According to the agreement, therefore, the total amount consolidated was to be repaid over nine years with no grace period. 1/ The general accord was implemented through bilateral agreements negotiat;d between Zaire and ·each creditor country; these contained the appropriate details relating to credits affected, amounts scheduled and interest rates. The 1976 agreement also provided for a reunion of the Paris Club in the following year to reschedule 1977 maturities. 33. The amounts reschedu.led under the 1976 Paris Club agreement are shown in Table 17. The total figure of US$211 million includes relief extended by Belgium over and above the terms of the general agreement; Belgium included interest payments due in the second half of 1976 (US$3.4 million), as well as 1977 maturities (US$25.0 million) in its bilateral agreement. Table 17: AMOUNTS RESCHEDULED UNDER 1976 PARIS CLUB AGREE~lliNT (In US$ millions) Principal Interest Total 1975 42.6 19.3 61.9 1976 89.8 34.4 124.2 1977 (Belgium only) 17.6 7e6 25.2 TOTAL 150.0 61.3 211.3 Moratorium interest charged on the consolidated amounts varied from 3.5 per- cent for USAID and USDA 2/ credits to 9 percent for the Netherlands, with a weighted average for all-paris Club countries of 7.9 percent. The weighted grant element 3/ of the consolidated 1975-76 amounts works out to 6.4 percent; including the l977 maturities rescheduled by Belgium, the aggregate weighted grant element for rescheduling under the 1976 Paris Club agreement comes to 6.9 percent. The table below sets out the terms and grant element of all amounts rescheduled under the first Paris Club agreement. ]:_/ The Paris Club, however, describes this agreement as the rescheduling of 85 percent of the amounts due over 10 years with a grace period of 3 years. 2/ U.S. Department of Agriculture. ll See Annex I page 2 for definition. ~- 19 - Table 18: AMOUNTS AND TERNS OF FIRST PARIS CLUB (JUNE 1976) BY CREDITOR COUNTRY Amount Horatorium Consolidated Interest Maturity Grant /1 Grant /2 Country (US$M) (weighted) (years) Element Equivalent Belgium 33.0 7.07 9.0 9 .. 5 3.14 (1977 maturities) fl_ (25.2) (7 .02) (10.0) (10.5) (2.63) Canada 0.7 8.0 9.0 6.2 .04 France 38.1 8.0 9.0 6.2 2.36 Germany 18.8 8.25 9.0 5.3 1 .. 00 Italy 27.3 8.8 9.0 3.4 .93 Japan 3.8 8 .. 0 9.0 6.2 .24 Netherlands 7.0 9 .. 0 9.0 2.7 .. 19 United Kingdom 12.3 8.0 9.0 6.2 .76 United States 45.2 7.75 9.0 7.1 3.20 TOTAL 186.1 7 .. 95 9.0 6.4 11.86 (Including 1977 maturities) (211.3) (7. 84) (9 .1) (6.9) (14.49) ll Based on a discount rate of 10 percent. /2 Amount consolidated multiplied by the grant element. /3 Represents 1977 amounts rescheduled by Belgium under the first agreement. 34. The US$62 million in 1975 maturities consolidated by the Paris Club in 1976 represented 60 percent of the total debt service in arrears at the end of 1975; the US$124 million consolidated in 1976 (this excludes the 1977 maturities rescheduled by Belgium) was the equivalent of about 41 percent of total debt service due in 1976. Also, as a result of the rescheduling, 1975 and 1976 interest payments in arrears were capitalized, thus increasing the stock of disbursed and outstanding debt as of the end of 1976 by US$61 million. As of December 1977, debt service payments in arrears on the rescheduled portion amounted already to US$20.2 million.. Furthermore, most of the contractual interest due in the second half of 1976 on all rescheduled debts which was to have been paid according to the original schedule was still in arrears by the end of 1977 (US$12.7 million). - 20 - 35. In July 1977, the second reunion of the Paris Club took place as was anticipated in the first agreement. The general accord signed at the second Paris Club meeting ~ith Zaire called for the consolidation and deferment of 1977 maturities of principal, as well as interest due in the first six months of the year. Interest payments due in the second half of 1977 were to be paid as originally scheduled. The latter provision was, hm·;ever, amended by an auxiliary agreement in November 1977 which provided for the inclusion of these interest maturities in the 1977 resched- uling. The repayment terms of the second Paris Club did not differ sub- stantially from those of the first agreement: 15 percent of the consolidated amount was to be repaid in three equal annual tranches in 1978, 1979 and 1980, and 85 percent in twelve equal semi-annual payments beginning in January 1981. In other words, the rescheduled amount was again repayable over nine years with no grace period. The maturities to be consolidated and the interest rate were to be determined in bilateral agreements negotiated between Zaire and each creditor country. 36. By the end of 1977, three countries had signed bilateral agreements to implement the second rescheduling (Belgium, France and the Netherlands); negotiations were underway with the other Paris Club countries. The total amount consolidated by the three countries was US$87.1 million of which US$27.5 million 1/ represented the amount already rescheduled by Belgium in 1976. - Table 19: Al'10UNTS AND TERMS OF SECOND PARIS CLUB AGREEMENT (In US$ million) Grant Moratorium Maturity Grant Equivalent Country Amount Interest (%) (yrs) Element (%) (US$ million) Belgium 27.5 6.3 9 12.0 3.3 France 44.0 8.0 9 6.2 2.7 Netherlands 15.6 9.0 9 2.7 .4 Total 87.1 7.6 9 7.4 6o4 If bilateral agreements had been signed with all of the Paris Club countries by the end of 1977, the amount consolidated would have been in the range of US$200 million, or slightly more than half of the total debt service due in that year. (Estimates of debt service in 1978-80 eligible for future Paris Club reschedulings are given in Annex III, Tables 12 and 13). 37. The combined effect of the first Paris Club rescheduling and the three bilateral agreements signed under the second agreement on the total debt service of Zaire as of December 1975 is shown in Table 20. 1/ Amount at 1977 exchange rates. - 21 - Table 20: EFFECT OF FIRST AND SECOND PARIS CLUB ON TOTAL DEBT SERVICE (In US$ million) 1st Paris Club 2nd Paris Club il Total Original Post Original Post- Net Change Schedule Rescheduling Schedule Rescheduling in Debt Year (end 1975) Stream (end 1976) Stream Service 1975 216.6 154.7 - 61.9 1976 /2 301.7 177.5 -124.2 1977 /3 358.1 358.3 377.6 317.1 60.3 1978 395.0 433 .. 6 459 .. 5 468.6 47.7 1979 390.2 428.1 458.1 464.7 44.5 1980 389.2 426 .L~ 472 .. 6 476 .. 2 40.8 1981 318.4 353.5 401.1 414.2 48.2 1982 289.4 322.5 372.7 385.1 45.5 1983 245.1 276.1 322.8 335.0 43.2 1984 197.5 226.5 269.4 280.4 40 .. 0 1985 153.3 172.6 211.5 221.8 29.6 1986 131.2 134.4 164.7 174.3 12.8 Memo Items: A. First Paris Club Net Present Value of ~ 1. Original Schedule end 1975: 2,445.6 2. Post Rescheduling Stream 2,418.6 3. Concessionality 27.0 B. Second Paris Club Net Present Value of ~ 1. Original Schedule end 1976: 2,523.3 2. Post Rescheduling Stream 2,517.3 3. Concessionality 6.0 Sources: Annex III, Table 9. /1 Includes only rescheduling by France, Belgium and the Netherlands. 72 Base year for discounting First Paris Club. 73 Base year for discounting Second Paris Club~ /4 Using a discount rate of 10 percent. - 22 - The relief l/ provided by the 1976 agreement was the equivalent of 1a1 percent of total debt service. The additional concessionality provided by the agree- ments signed in 1977 is equivalent to US$6.0 million, or almost .3 percent of the present value of total debt service, bringing the concessionality of actual debt relief extended to 1.4 p~rcent. If all of the bilateral agreements relating to the second Paris vlub accord were to become effective, additional concessionality would represent US$13.2 million, raising the overall relief to 2.2 percent of total debt service (see Annex III, Table 9). Table 21: EFFECT OF FIRST AND SECOND PARIS CLUB AGREEHENTS ON DEBT SERVICE DUE TO PARIS CLUB (IN US$ Nillions) Post- "origirrl" Resch72uling Net Year Stream-- Stream-- Adjustment 1975 136.1 74.2 - 61.9 1976 base 140.7 16.5 -124.2 1977 200.7 140.4 60.3 1978 206.4 254.1 47.7 1979 198.5 243.0 44.5 1980 174.9 215.7 40.8 1981 154.3 202.5 48.2 1982 131.1 176.6 45.5 1983 100.1 143.3 43.2 1984 83.4 123.4 40.0 1985 55.3 84.9 29.6 1986 40.5 53.3 12.8 Memo Items: Net Present Value of: /3 (a) "Original" Stream = 1211.3 (b) Post-Rescheduling Stream = 1178.3 (c) Concession = 33 /1 Debt service due to the Paris Club prior to rescheduling~ /2 Change in debt service to the Paris Club as a result of rescheduling agreements implemented in 1976-77. (For 1977 only France, Belguim, and the Netherlands are included)e 11 Using a discount rate of 10 percent. ]:_/ The amount of eoncessionality, that is the difference between the dis- counted value of "original" and Post-rescheduling repayment streams, expressed as a percentage of the discounted value of the "original" stream. The amount of concessionality extended to Zaire by the Paris Club agreements can be compared with either total debt service or debt service due to the Paris Club. - 23 - 38. Compared with the present value of maturities owed to the Paris Club through 1986, the additional US$6.1 million represents 0.4 percent, for an overall concessionality of 2.7 percent on Paris Club debt service. 1/ The unsigned 1977 agreements would have raised the relief to 3.8 percent. 39. Debt relief was extended by Zaire's creditors on more stringent terms than those applied to new borrowing during the same years. The average weighted grant element of borrowing in 1976 was 23.8 percent and that in 1977 was 40.3 percent; the only type of credit contracted during those two years with a grant element of less than 10 percent was from suppliers. Whereas neither rescheduling agreement provided for a grace period, the average grace period for all loans contracted in 1976 was 3.7 years and in 1977 5.1 years. Furthermore, the average interest rates on private borrowing alone in 1976 and 1977 (7.75 percent and 7.65 percent respectively) were slightly lower than the weighted moratorium interest rates on the debt reorganization. 40. The terms of the relief extended to Zaire in 1976 by the Paris Club were generally harder than those provided in the recent past to other developing countries. Table 22 sets a frame of reference for assessing the concessionality of debt relief to Zaire. Bo London Understanding 41. In November 1976, representatives of syndicated bank groups met with Zairian Government officials in London to discuss the re-establishment of Zaire's creditworthiness vis-a-vis the banks, in view of accumulated arrears on syndicated bank loans (US$179.8 million at the end of 1977 ). Under the agreement that was reached, Zaire would provide for payment of all arrears as of the date of the accord by January 1977 at the latest. Arrears of interest were to be paid directly to the creditors and future interest payments made according to the original schedules. Both arrears of principal and future amortization payments were to be placed in a blocked account until such time as Citibank could syndicate a medium term credit to Zaire of about US$250 million. The agreement also specified that Zaire should begin negotia- tions iwmediately with the International Monetary Fund (IMF) for a stand-by credit to be effective by April 1977. 42. The IMF stand-by credit was concluded in April 1977 for US$52 million, along with a compensatory financing arrangement in the amount of US$33 million. Payments equal to arrears of interest as of December 1976 were made in 1977 (US$25 million), but no 1977 interest maturities had been settled by the end of the year.2/ The syndication of the Citibank loan, now estimated to be about US$220 million, had not been made by July 1978. The terms proposed for this credit were an interest rate of 2.25 percent above LIBOR ll and a maturity of five years with no grace period. ]j Similar calculations of the effect of the first Paris Club reschedt,-..ling only would yield concessionilities of 1.1 percent on total debt secvice and 2.2 percent on debt service owed to the Paris Club. ~/ Thes8 payments have reportedly been made during 1978. '}_/ London Inter-Bank Offer Rate. - 24 - Table 22: MULTILATERAL DEBT REORGANIZATION 1974-1977 Consolidation Moratorium Country period Amount Maturity Grace interest G. E. jJ_ (US$ mns) (Years) (Years) (%) (%) Chile /2 (March1974) 1973-1974 470.0 9 2 n.a. n.a. Ghana /3 Outstanding 300.0 28 10 2.5 61.0% (March1974) Balance at 12/1972 India /4 (Oct. l974) 4/1974-3/1975 179.2 variable variable 64.1% (June 1975) 4/1975-3/1976 156.9 " " 65.0% 91 (1976) 4/1976-3/1977 169.0 " 70.1% Pakistan (June 1974) 7/1974-6/1978 650.0 30 10 2.5 62.0% Sierra Leone ./2_ (Sept. 1977) 7/1976-6/1978 n.a. 10 2.5 (7.7) (9. 0) Zaire (June 1976) /6 1/1975-12/1976 186.0 9 7.95 6.3% (July 1977) /7 1/1977-12/1977 87 .. 1 9 7.65 7.4% ~ Grant element using a discount rate of 10 percent and assuming repayment in semi-annual equal installments. Two earlier Paris Club debt renegotiations took place in 1965 and 1972 consoli- dating commercial and bilateral maturities in 1965-66 and 1971-72, respectively. The 1966 agreement had a grant element of 15.4 percent; the interest rate and, consequently, the grant element of the 1972 agreement is unknown. This is the fourth in a series of debt renegotiations with the Paris Club. The agreements of 1966 and 1968 covering maturities on commercial credits from June 1966 to June 1972 yielded grant elements of 23 to 26 percent. A renegotiation of 1970-72 maturities already rescheduled took place in 1970; the grant element was the same as that cited above for the 1974 agreement. These agreements were not under the auspices of the Paris Club; they covered maturities of all public debt. This agreement covered maturities of commercial and bilateral loans con- tracted prior to January 1977. Does not include 1977 maturities rescheduled by Belgium under the first agreement. Includes only amounts scheduled by the three countries which signed the second Paris Club agreement before the end of 1977 (Netherlands, Belgium, France). - 25 - ' IV. PROJECTIONS A. The 1977 Situation 43. The status of external public debt outstanding and in arrears as of the end of 1977 i.s summarized in Table 23. Of the $3.5 billion debt outstand- ing (including undisbursed amounts), the portion attributable to private bank lending was almost US$1.4 billion, or about 40 percent of the total. Bilateral credits accounted for the second largest share, with US$1.1 billion in debt outstanding. Even after the rescheduling agreements with the Paris Club cover- ing US$270 million in maturities from 1975-77, the amount still in arrears as of the end of 1977 (US$377 million) represented over 10 percent of the total outstanding balance. Table 23: 1977 DEBT OUTSTA..l\lDING 1/ (US$ million) Total Disbursed Undisb. Arrears Debt fJ:_ Debt Amount Principal Interest Total TOTAL 32536.8 2,632.8 903.9 268.1 109.4 377.5 --- Private 22041.3 1,645.8 395.9 239.1 88.7 327.8 Suppliers 671.5 505.6 165.9 58.4 23.1 81.5 Banks 1,369.8 1,139.8 230.0 180.7 65.7 246.3 (Synd. Banks) (543.2) (514.6) (28.6) (141.7) (38 .1) (179.8) Official 1 2 495.5 987.4 508.1 29.0 20 .. 7 49 .. 7 Multilateral 367.6 179.7 187.9 ---:-4 .2 .6 Bilateral 1,127.9 807.7 320.2 28 .. 6 20.5 49.1 /1 As of December 31, 1977. /2 Includes undisbursed amounts. About half of the arrears were on syndicated bank loans and an additional 35 percent were on other private credits. The undisbursed balance (US$904 million) was composed primarily of official loans with bilateral credits alone accounting for one third. - 26 - B. Prospects in 1978 44. The projected debt service for 1978 is US$475 million -- the highest yet experienced by Zaire; it exceeds the 1977 debt service due by US$100 mil- lion without taking into account the arrears accumulated by the end of 1977. Table 24: PROJECTED FLOWS IN 1978 /1 (In US$ million) Projected Projected Debt Arrears Tota.l Projected Net Net Transfer Service Due as of 12/77 Due Disbursements Transfer (excl. arrears) TOTAL 475.0 377.5 853.3 264.7 -588.6 -210.3 Private 374,.0 327.8 701.8 144.6 -557.2 -229.4 Suppliers 132 .. 1 81.5 213.6 61.0 -152.6 -71.1 Banks 241.9 246.3 488.2 83.6 -404.6 -158.3 (Synd. Banks) (123.4) (179.8) (303.2) (12.5) (-290.7) (110.9) Official 84.7 49.7 134.4 120.1 -14.3 35.4 Multilateral 15.8 ----:6 16.4 76.7 60.3 60.9 Bilateral 68.9 49.1 118.0 43.4 -74.6 -25.5 /1 Based on loans committed up to December 31, 1977. 45. Net transfers projected for 1978 are negative for every type of creditor except multilateral institutions; this holds true even if arrears are not taken into account. Disbursements in 1978 are expected to drop 40 percent from the level in 1977, with flows from bilateral lenders falling by 80 per- cent (from US$206 million to US$43 million). The low level of disbursements on private credits in 1977 is expected to drop another 20 percent in 1978, from US$179 million to US$145 million, compared with average annual flows of US$330 million in 1975-76. The aggregate negative net transfer in 1978 would approach US$589 million if arrears are included, and reach US$210 million if only projected debt service is taken into account. C. DRS Projections to 1987 1/ 46. Projections of future disbursements as of the end of 1977 show a marked decline in flows over 1978-82, compared with the previous five years; l/ World Bank Debtor Reporting System. - 27 - from a total of US$2.4 billion in 1973-77 to US$870 million in 1978-82. (See Table 25). These projections are based on the undisbursed balance at the end of 1977 and do not include estimates of future commitments. Table 25: PROJECTIONS OF FUTURE DISBURSEMENTS BY TYPE OF CREDITOR jJ_ (In US$ million) Undisbursed Average at 12/77 1978 1979 1980 1981 1982 1983-87 TOTAL 903.0 264.7 251.6 179.2 103.5 73.1 31.8 -- -- Private 395.8 144.6 138.5 83.1 28.2 1.6 Stlppliers 165.9 61.0 65.6 34.5 4:9 Banks 229.9 83.6 72.9 48.6 23.3 1.6 (Synd. Banks) (28.6) (12.5) (9.7) (6.4) Official 508.1 120.1 113.1 96.2 75.3 71.5 31a8 Multilateral 187.9 76.7 50.5 27.2 Bilateral 15.5 11.4 6:6 320.2 43.4 62.6 69e0 59.8 60.1 25.2 /1 Based on loans committed up to December 31, 1977. Disbursements on private credits represent about 55 percent of projected flows in 1978 and 1979; over 70 percent of the undisbursed balance on private credits would be drawn during these two years. In each year thereafter, official flows comprise the larger share, with 45 percent disbursed by the end of 1979 and 80 percent by the end of 1981. 47. Project aid accounts for more than 90 percent of the projected future flow of disbursements to the Zairian economy, with 60 percent (US$540 million) destined for the two largest sectors, electrical production/distribu- tion and transport (see Table 26). Communications projects and GECAMINES' mining operations are expected to absorb another 15 percent of future flows; more than half of undisbursed credits to GECAMINES (US$61 million) would be drawn in 1978 and the balance by the end of 1980. Agriculture would continue to receive a very small proportion of disbursements; about 80 percent of the projected US$47 million would be disbursed in the first three years of the projections. - 28 - Table 26: PROJECTED DISBURSEMENTS BY SECTOR il (In US$ million) Undisbursed Average at 12/77 1978 1979 1980 1981 1982 1983-87 TOTAL 903.9 264.7 251.6 179.2 103.5 73.1 31.8 =-== Project 833.6 243.9 239.0 166.1 96.4 63.4 24.9 Electrical Prod. 312 .. 4 105.6 107.9 63.6 24.2 11.1 Transport 229.5 41 .. 8 39.5 35.5 41.6 58.3 22.8 Communication 78.4 11.3 17.4 29.0 20.7 Mining 60 .. 8 38.3 14.6 7.9 Agriculture 47.4 13.7 13.6 11.5 4.0 2.6 1.9 Water Supply 45.4 12.2 24.9 7.7 •6 Financial Inst. /2 17.7 5.3 4.9 4.6 2.5 .3 .2 Iron and Steel 14.3 2.9 8.0 3.4 Textiles 8.0 .8 1.9 2.0 2.3 1.0 Food/Bev. Manuf. 6.8 4.1 2.7 Others 12.9 7.9 3.6 .9 .s Non-Project Imports 66.4 18.4 11.5 12.7 7.1 9.7 6.9 Food Aid 16.6 1.7 3.5 7.5 1.5 1.2 1.2 Other [l 49.8 16 .. 7 8 .. 0 5.2 5.6 8.5 5 .. 7 Cash Flows j!!_ 3.9 2.4 1.1 .4 /1 Based on loan committed up to December 31, 1977. 72 SOFIDE. 73 Military Aid. /4 Administrative budget support. 48. Even though projections of future debt service shown in Tables 27 and 28 do not include repayments of arrears~ debt service due in each of the years 1978-82 exceeds the US$375 million owed in 1977, by as much as US$100 million during the first three years of projections. These projected payments do, however, include service on the amounts consolidated under the two Paris Club agreements, in the range of US$40-48 million in 1978 through 1984. About 75 percent of debt service due by the end of 1982 is owed to private credi- tors, with 50 percent owed to private banks alone. Thereafter, from 1983-87, service owed on official credits increases to slightly more than half of payments due. This distribution reflects the generally longer maturities on multilateral and bilateral lending. - 29 - Table 27: DEBT SERVICE 1978-87 BY TYPE OF CREDITOR AS OF DECEMBER 1977 (In US$ mJllion) ~. 1978 1983-87 Amount % Share % Share Average 1979 1980 1981 1982 1978-82 Amount % Share TOTAL 475.7 100.0 470.8 482.2 421.2 391.6 100.0 236.1 100.0 Private 391.0 82.2 365.6 366.5 298.8 265.0 73.4 112.9 Suppliers 132.1 27.8 123.7 47.8 115.2 109.3 88.6 24.7 35.9 Banks 258.9 54.4 241.9 15.2 251 .. 3 189.5 176.4 48.7 77.0 (Synd. Banks) (123.4) (25. 9) (100.8) 32.6 (81.3) (69.1) (56. 8) (17. 4) (15.6) (6.6) Official 84.7 17.8 105.2 115.7 122.3 126.6 26.6 123.2 Multilateral 15.8 3:3 23.6 52.2 22.0 23.3 23.3 5:2 Bilateral 68.9 14.5 81.6 93.7 99.0 22.8 9:7 103.3 21.4 100.4 42.5 49. The proportion of total debt service payable through the central government budget averages 73 percent for all ten years included in the projections (see Table 28). Debt service owed by public enterprises amounts to an annual average of US$200 million in 1978-82, or 45 percent of the total. Of the amounts owed by the public enterprises, about 40 percent is at the charge of the state budget during the first five years of the projections. The portion repayable by the state includes debt service resulting from the Paris Club rescheduling agreements. Table 28: PROJECTED DEBT SERVICE BY SOURCE OF PAYMENT (In US$ million) Total Debt Outstanding at 12/77 1983-87 1978 1979 1980 1981 1982 Average TOTAL 3,536.8 475.7 470.8 482.2 421.2 391.6 --· 236.1 Central Gov't Budget 2,653.0 365.6 336.1 352.9 299.7 284 .. 7 Direct Gov't 2,002.5 275.8 247.4 --- 268.2 225.2 --- 171.4 Public Enterprises 215.0 120.4 650.5 89.8 88.7 84.7 74.5 69.7 51.0 Other 884 .. 6 110.1 143.7 129.3 121.5 106.9 Public Enterprises 859.0 64.7 109.9 134.5 129.1 121.2 106o6 Official Devel. Bank 25.6 64.3 .2 .2 .2 .3 c.3 .4 - 30 - 50. Relatively low levels of projected disbursements during the same period when projected debt service is at a peak results in significantly re- duced net transfers of resources. In the case of Zaire, net transfers projected for each of the first five years after 1977 fall substantially below zero, from- US$211 million in 1978 1/ to - US$318 million in 1982 (see Table 29). Thereafter, when projected diSbursements drop below US$20 million per annum, negative net transfers are basically equal to the amount of debt service due. In short, if new disbursements are not forthcoming, and if no additional arrears are accumulated, a total net amount approaching US$1~4 billion would flow out of Zaire to its creditors from 1978-82. Table 29: PROJECTED NET TRANSFERS BY TYPE OF CREDITOR, 1978-82 (In US$ million) 1978 (excl .. arrears) 1979 1980 1981 1982 Total Disbursements 264.7 251.6 179.2 103.5 73 .. 1 Total Debt Service 475.7 470.8 482.2 421.2 391.6 Total Net Transfers -211.0 -219.2 -303.0 -317.7 -318.5 Suppliers -71.1 -58.1 -80.7 -104.4 ·-88. 6 Banks -158.3 -169.0 -202.7 -166.2 -174.8 (Synd. Banks) (-110.9) (-91.1) (-74.9) (-69.1) (-56.8) Multilateral 60.9 26.9 5.2 -7.8 -11.9 Bilateral -25.5 -19.0 -24.7 -39.2 -43.2 51. Obtaining a net transfer of zero over the next five years would imply an accumulation of additional arrears on the order of 45 to 80 percent of debt service owed. The solution of the debt problem for the period 1978- 1980 with rescheduling/refinancing arrangements on terms similar to those of the recent past would create a serious debt problem during the first half of the eighties. 1/ This figure excludes arrears as of end-1977. The negative net transfer in 1978 would be $589 million if arrears were taken into account. - 31 - ANNEX I Page 1 DEFINITIONS }:__/ 1. Public External Debt: Debt owed to residents of foreign countries by any public body, or by a private enterprise with a public guarantee, with an original maturity (see definition below) of over one year. In this analysis only debts repayable in goods and foreign currencies are taken into account. Public bodies are defined as: a. Central government and departments. b. Political subdivisions such as states, provinces and municipalities. c. Central banks. d. Autonomous institutions where; i. the budget is subject to approval of the central government; ii. the central government holds the controlling share of stock; or iii. in case of default, the central government is liable for the debt of the institution. 2. Debt Repayable by the Central Government Budget: In the case of Zaire, this is the direct debt of the government, its departments and sub- divisions, as well as the debt of institutions which is specifically at the charge of the government budget. 2/ This classification was determined for each individual loan based on information from Zaire's Office of External Debt Management (OGEDEP); as of the end of November 1977, OGEDEP is responsible for servicing all debt repayable through the government budget. 3. Arrears: Arrears of both principal and interest as recorded in the World Bank's Debtor Reporting System (DRS) represent cumulative amounts which fell due before the end of a reporting period (usually December 31 of each calendar year) according to the contractual amortization schedule and which have not yet been settled. In the DRS table which projects future debt 1. Terminology used in this report is defined according to the World Bank Manual for Reporting External Debt and Grants. Zaire-specific defi- nitions are based on terminology used by the Zairian Office of External Debt Management (OGEDEP). 2/ Not all of the debt of public enterprises is repayable through the central budget. For example, the Zairian copper mining enterprise, GEC&~INES, is responsible for servicing all of its own external debt. ANNEX I Page 2 service (DRS Table 2), amounts in arr~ars are not included in projected debt serv1ce. Arrears of principal appear as a negative adjustment to the out- standing balance during the first year of the projections. 4. Maturity: The time period between the signing of a loan (commit- ment date) and the due date of the final principal repayment. 5. Grace Period: The interval between the commitment date and the due date of the first principal payment. 6. Grant Element: The concept of grant element refers to the amount 1n percentage terms of the concessionality implied by the terms of a loan or group of loans. It can be calculated in more than one way with differing results. The most commonly used method is to apply the following formula: where GE grant element as a percentage of the face value of a loan r = annual interest rate a = number of payments per year 1 a - 1 d = discount rate per period, i.e., (1.1) which gives a compound annual rate of 10% G = grace period M = maturity. Repayment is assumed to be in equal payments of principal. It should be noted however, that this method gives only an approximation of the concessional element in a loan.. This is because the formula relies solely on the terms (interest rate, maturity, grace period) and assumes amortization in equal payments of principal. The true concessionality can be calculated by subtracting the present discounted value of the stream of repayments from the face value of the loan or loans; the difference is expressed as a percentge of the face value. In this analysis the concept of concessional element is applied to debt relief in the Aame way that it is to loans, substituting the present value of amounts consolidated for the face value of a loan. - 33 - ANNEX I Page 3 7. Weighted Average: Weighted averages are used to deterr.~ine average terms (e.g., interest rate, grace period, maturity, grant element) for specific groups of loans. The terms of each loan are weighted by the ratio of the individual commitment amount to the aggregate commitment a.mount for the group of loans under consideration. 1/ 8. Commitment: The amount, net of down payments, of a loan contracted. It represents the value of cash, goods or services which the creditor has pledged to deliver to the debtor. 9. Disbursement: The delivery of cash, goods or services by the creditor, turning the "commitment" into a liability for the debtor. 10. Outstanding Debt, including Ur.~~isbursed: The total amount of all commitments minus cumulative principal payments as of a given date (usually December 31 of each calendar year). This includes undisbursed amounts. 11. Disbursed Only Debt: The sum of all disbursements minus cumulative principal payments as of a given date. The difference between the total outstanding debt and the disbursed outstanding balance constitutes the undisbursed amount of the loan or loans. 1/ Calculation of average weighted terms: Loan No. Amount Interest Rate Maturity 1 1,000 7% 2 10 years 2,000 8% 15 years 3 5,000 5% 25 years Weighted interest rate = (1,000 x .07 + (2000 x .08) + (5000 x .05) .06 or 6% 8000 Weighted maturity = (1000 X 10) + (2000 X 15) + (5000 X 25) = 20.6 yrs. 8000 ANNEX II - 34 - Page 1 DEBT NANAGEMENT BY OGEDEP 1. Shortly before the ·first Paris Club meeting in June 1976, the government undertook an assessment of the shortcomings of the institutional structure for debt management. It thus appeared that specific borrowing policies were lacking, the management of public debt was decentralized and uncoordinated, the system of data collection and centralization at the Department of Finance was deficient, and the accounting procedures followed by both the Department of Finance and the Bank of Zaire were inadequate for the elaboration of accurate debt statistics. 2. As a result, the Zairian government decided to establish a central debt management agency which would, inter alia, 1) centralize all debt statis- tics, 2) formulate and submit to the Department of Finance a national policy on borrowing, 3) administer a public debt fund to be created for the amortiza- tion of the public debt through an annual budgetary allocation, 4) analyze the financial implications of and approve new borrowing proposed by the Department of Finance and 5) ensure that beneficiaries of loans guaranteed by the State effectively discharged their contractual obligations. On September 16, 1976, the "Office de la Gestion de la Dette Publique" (OGEDEP) was officially created to assume these important responsibilities. 3. OGEDEP is a public. sector institution with financial autonomy and legal status. It is supervised by a committee comprised of high level representatives from the Department of Finance (chairman), the Bank of Zaire, Office of the President of the Republic, Portfolio Department and ANEZA (Association Nationale d'Entreprises Zairoises). Its organization 1 functions and accomplishments are summarized below: (a) Organization of OGEDEP: 4. OGEDEP is organized in three sections: 1) Data Centralization and Nanagement, 2) Financial Analysis and 3) Economic Analysis. The Data Centralization and Management Section maintains and processes all public debt information through a double-entry accounting system from which all the basic statistics are derived. The accounting system operates in accord- ance with the bookkeeping procedures of the "Accounting Plan" recently intro- duced in Zairian public and private enterprises. This section is also responsible for the administration of the Public Debt Fund (see below) and for issuing payment orders to the Bank of Zaire for the amortization of the government foreign debtsa l/ The responsibility for issuing these payment 1/ According to its status OGEDEP is to administer the amortization of all government debts, domestic or external. For the moment, however, domestic debts are still handled by the Treasury. As for the external debts of public and private enterprises guaranteed by the government, OGEDEP follows their evolution but is not responsible for their amortization except in the case of default by the enterprises. Moreover, OGEDEP handles the financial side of the compensation for expropriated enter- prises. - 35 - ANNEX II Page 2 orders was officially taken over from the Treasury by OGEDEP beginning in December 1977. 5. The Financial Analysis Section is directly involved in advising on debt management issues. This secr1on, in conjunction with the Economic Section, examines and analyses the financial implications, particularly in terms of future debt service burden, of each new external borrowing proposal submitted by the Department of Finance for OGEDEP advice. This assessment is not limited to direct government borrowing but also involves guaranteed debts. OGEDEP's assessment and advice is required before the Department of Finance can authorize any new foreign borrowing or guarantee involving the State. 1/ 6. The functions of the Economic Analysis Section are also directly related to debt management. This Section analyses the impact with respect to overall development objectives of each new external bor.rowing project submitted for consideration, including its rate of return and its projected effects on the balance of payments. In the future it will also analyze the debt position and prospects for the purpose of assisting the government in formulating more coherent deht management policies. (b) Public Debt Fund 7. Each year OGEDEP is allocated a budgetary appropriation-- in local currency -- which is equivalent to the foreign exchance required to servic~ the external debt during the coming year. This appropriation is held in a special account at the Treasury which acts as intermediary between OGEDEP and the Bank of Zaire.. When OGEDEP is about to issue the payment orders to the Bank of Zaire, the Treasury is advised to credit OGEDEP's account with the amounts involved. In turn, the Bank of Zaire debits the Treasury's account in favor of OGEDEP for the funds actually transferred to creditors. For 1978 OGEDEP received an appropriation of Z 304 million corresponding approximately to the projected debt service~ excluding arrears, due for the year (estimated at Z 300 million)~/. However, the conversion of these local currency funds into foreign exchange by the Bank of Zaire remains one of the critical aspects of the debt management problem. The Bank of Zaire alone decides which transfer payments will be made to foreign creditors. On this question, the major creditors requested at the first Paris Club meeting that, as one of the conditions for renegotiation, a program on foreign exchange 1/ Following the Pr.esidential Decree of 1969, only the Minister of Finance is authorized to sign external loan agreements or provide the guarantee of the State. l/ This is debt service payable through the Central government budget; it excludes, therefore, 70 percent of the service payments owed by public enterprises. - 36 - ANNEX II Page 3 requirements to service the debt be implemented by the Bank of Zaire. The program specified that at least 10 percent of all export earnings should be automatically allocated for that purpose. At a later stage it was recommended that an additional allocation equivalent to 1 percent of coffee exports also be earmarked exclusively for the repayment of rescheduled arrears on commercial credits. It is still unclear, however, to what extent these schemes have been implemented by the Bank of Zaire. (c) OGEDEP's Accomplishmen~s: 8. Since its creation over a year ago, OGEDEP has realized two of its main operational objectives~ First, it has completed an impressive inventory of the debt and has developed an efficient processing and accounting system in a relatively short period of time. The coverage of OGEDEP's information on the public external debt is estimated to be more than 95 percent. 1/ To ~omplete the initial inventory of the debt, an attempt was made by-OGEDEP to use the statistics already available at the Department of Finance and at the Bank of Zaire. The lack of comparability between these two sources of information, however, soon prompted OGEDEP to abandon this idea. Inscead, OGEDEP concentrated on obtaining reliable statistics directly from the in- dividual debtors and creditors. OGEDEP devoted most of the first year of its operation to this purpose and, by the end of July 1977, it was in a position to present official statiRtics on the status of the debt of Zaire which were for the first time acceptable to both creditors and debtors alike. 9. Secondly, OGEDEP has organized itself as an efficient and respected institution in the context of debt management policy-making. It is regarded by debtor enterprises and agencies as important entity in the decision process for approving new borrowing. Its advice and recommendations to the Minister of Finance on borrowing policies appear to have been followed and respected~ At the same time OGEDEP is establishing an efficient debt reporting system under which a regular flow of updated information is received from debtor agencies and enterprises as well as from creditor institutions. 10. During the mission in February 1978, OGEDEP, the Bank of Zaire and the Directorate of the Treasury agreed to initiate a coordination of their respective statistical systems in order to facilitate a cross-flow of information, and to assist in improving national accounts and balance of payments projections. The Bank of Zaire has also indicated that it ib preparing data on private borrowing with no government guarantee. These private debt statistics are expected by the end of 1978. l/ This estimate is based on a reconciliation of OGEDEP statistics with data from the Directorate of the Treasury, the Bank of Zaire and creditor sources, which was undertaken by the Mission in February 1978. u~/2~/Jti 1 l: ~I P:-1 fAtlLL l - llU •·l PA~l L f:.XlERl\Al flUfH... IC C[Cl Lil.:lSfAhiJlt\G ir..CUJ,Jlt\L ui~!;l~EUi{$ED A':. ut- l1Lt. • .H. l'JI7 [;(t! g!:PAYAU!.t H-.: fu~Lh-'1·, LtJkr.LNLY 1\!\U GCuu·_. r. fH!.. USAhu!:. uf U.,S • . ;uLLAH~l u f u l •. u r ~ 1 A ~~ u 1 N G I i~ A k f.. L A it S TYPE lif- CIU.O 1 TOH UIStlUH~lU -------------------------:----------------------- luTAL :Li1Ll~UUK5l0: : VldNCl PAL : 11a !:K E:.d i.H( lH l Gk LGUN! f4 JAPAN ·JL) ~-.1 NElHtklAt-lCS (J ·r, 2o 3 't,3tltJ 11 • 64'1 't56 lt 2. 2 leit22 t.i l4 , 'I~ I UNIT£0 STATES jCJt1,7u7 9,091 . 3 7 7. 198 'J~,0-3U 21,31~ HlllliPL[ LtNOERS 25,0~0 25,QJO - CCTAL PRIVATE eANK CREOilS lcl2t..L37 22t,441 1,3!>2,604 UHJ, oCJ6 o5,~9l PUUllCLY ISSUED B~NCS BELGIUM 6, 4~2. 6,Lc!:>2 24L 2'.Jl TUlAL PUBLICLY ISSUED et~£S o,4~2 C.,452 2H8 3,~4 !2l MUll IlATtHAl LuAN~ AFI{ 1 CAN Ul:V. tl Af\K L.t.. :i4 Eel:il9 1~.4~3 j(,L) 2llt ~ ARAB UA~K-AFK!CA DtV 10,00:) lJ,JJO H EUH(I-'(At\ lH:V.fUNO llt. 2 L4 £5 l4e2jCJ H H EURLPEA~ INVt~l DA~K 14,631 18,)94 jJ,02~ 0 ~It. :tf 7:J 1 l ; ') I ~d f AU l C 1 - l A I 1-t l PAuL 2 l:XJ(I{f\Al PUI:lLIC (flH utdSIM4lliiH.• h.tLUdlr-lL Ul~dl SIWH.Sf:u A'J Ut JJf.:.C. 31, 1977 0 t:: U1 H. l P A Y A d L t: l t\ f- Ci{ L I L U L UK t-\ d..; CY Ata} Gt: u 0 S (lf\ TIIUUSA1,1JS ut U.~. LlullAkS) u E l::l 1 U t i S T A IJ U I N ti N Ah~i;:At<.S TYPE Lt CRt:OITOH CRt:OlTOR COUNTRV -----------7-----------------------;----------------------- Ul~JU~~l~ :UNCIS~UR~LO: I OL4l : t' i< UK I PAI : I N 1 [ 1~ 1: !) I' ------------------------------------ lfiHO -----------:-----------:-----------:-----------:----------- ~t>,Jo7 43,{J:.i3 100,0).} lCA 67,013 luo. 'J·:I! 1 CJ 4, ' () O't INT. CUffEE ORG. • 902 - 'W2 TOTAL MULIILATEkAl lGANS l"/-:f,76.l 181,H62 367,t:l3 3tJJ L l't 0 (LATERAL LOANS BELGIUM CANADA 13, 7\J7 - 13, 7.)7 ;I tD4 2 ~. 4 4.'J 14,3S2 3CJ,IlJL l., 2r,) l '1-i'J C~HNA, P.R. Of l06,2i'Ll T lu8v22o fKANC.E tuJ, 1' 121' 361 ~ 0 ,212 ------------------------------------ IOlAl EXTEHNAl PUUll\_ DEBT ----------------------------------------------------------- 2,CJ_:j2,0~o 903.~41 3,~3Ll,7'-H 2tJti,036 .lO'Jt-141 w OJ 1-JOff~: Ill fNLY a.JftHS laJTH ~N O~IGit-..4l Ck tXlcNlH:U 1-\AfUHllY Uf OVER ONt: Yt:AH AI/ Po'l PAu( 't SERVIC~ PAYHE~TS, C~~MITHfNl~, OIStUHSEMENTS ANU UUT~TANUIN~ AHUUNf~ Of tXf(kNAl PUOL!C Uttlf PRGJECTICNS B~SEC ON CfHT CL1S1A~OING INCLUO!NG UNOI~SURSEC AS Uf OEC~ Jl, 1977 Ccfl REJJAVAlllE IN fORt:lGii CUIb~ 3.r..83() 1,221 4.9~4 5,786 1,280 1973 20,445 7r0t.6 !lOU 36,179 122e831s 38,213 7e225 ls875 1 BEGlNNJ~G Cf PER(GC ---------:---------------~-------:-----------------------------------------------------------:----------------------- DISBURSED : INCLUDING ; CCI-!HU- OISBUHSE- S E H \1 1 C f: PAYMENTS CANCEL- A0Jb!>f- ONLY :UNDISBURSED: ftHilS MENTS :-~---------;-----------:-----------: LATIONS M£r~T ~ ~ PKlNC!PAL ; INTEREST ; TOTAL Ol ;· (~) (3) (4) {5) : (6) : t71 (tit ( 9) 1970 4ell5 ~' 115 39,272 <#72 96 1,070 -6 197! 3.131 ~2.40'3 le203 lt., 052 1.955 100 2,055 'teB61 1~72 18,396 46.544 28.647 4,415 518 . 4,993 9':>1 1973 43o026 43,026 6oUJ2 9,650 2.351 12,007 l, 912 1'114 .ftloloOS 'o1e470 10,82t 8,286 9e120 4,001 13,721 ·!l,ti70 197!:1 44.915 5~t4'tt· ble656 le2S9 2e171 923 3,694 -ti.~C.2 1976 3IEo « TillS COLUHN 5110W5 ThE Cf 'R llhHH IC IHUALANCE IN Tt1io OUlSTAtiOING INC LUllING UIIOI SUUkHO fROM YEAR ONE rRGH TO CATEGORY NtXT. 10THE I~ ltf: CAUSES M051 COHHCh ANCT~EH TAOlf. Cf IMbAlANCES Akt CHANGES IN EXCHANGt RATES ANO Of D *•• ~ 9 • l~E FCLLCWING fiGURES ARE PROJECTED ¥ ***** 1978 7.443 10o01e3 - 1'.179 e,969 - 1,982 le5l 317 774 - l l9UO 8.614 9,581 8,61~ - 6lU - 'H3 913 662 612 lt57!;) - - Vl 0'\ 111525 1<)81 1.161 1e161 - - 'H3 546 l~ 459 1982 1983 6,81t8 5,935 6,B4S - - -~ 'H3 lt80 1.393 5,«;]5 - - 'H3 414 le327 1984 5.022 5,022 - - 'H3 348 1,261 1985 1'.186 4.l(j~ 'telO«i - - 6 o,252 2oB98 91 2a909 ~ ~~~~H IC IMbALAI. ./7,; Tl.bU:: L - lA!Ki: 11: 'J I Pr·: 'VAL[ 21 SERV.CE PAVHEhT~. CC.Hll~EhTS, OISUURSEHENlS A~U UUJSrANCING AHOUUfS UF lXIERNAl PUbLIC OtUT PROJECJICNS HASEC CN CfUI CUTSIA~DihG INCLUDihG UNOJSUURSEU AS OF OtC. 31, 1977 CEfl REPAYABl~ IN fOREIGN CUkRtNCY A~O GCUUS Cl~ THOUSANDS OF Ua~. DOllARS) TYPE Of CRtDITGR PRIVATE UAhK CREOliS CREDilCk CCL~l~Y fRA~CE YEAk UEBT OUTSIANDJNG AT : 1 ~ A h S A ~ l I 0 N S U L R I N G P E R I 0 0 OHti:K Ct-ANGt~ 6EGj~NING OF PfRI[O ---------:-~---------------------:-------------·----------------------------------------------:----------------------- J OIS8URSfD I I~CLUDJ~G 1 CC,._M IT- 0 ISBURSE- S E R V I C t PAYMENtS CANC.ll- AOJUST- 1970 ONlY ' l t :UNDISBURSED& C21 ; I!ENIS (3) MENIS . ,, :-----------:-----------&-----------: PRINCIPAl t5f IHTtRI:Sl I l T01Al C61 'll LAT lOtiS '81 HENT ( 9) ~ 1971 1e651 .. 851 1972 30 30 1 .• 851 1a851 134 1973 1l't 1. 851 1e851 't0,012 lleeleOO 232 1974 36,251 ll2 -281 Le1.516 ld8,1e59 3'te658 200 2,989 3,189 13,550 1975 71.812 2la3.365 6~t ,:no 51,036 3,389 'ee279 J,b66 -4,416 1976 111,253 299,188 66 ,jJ 141 71,692 6tl32 7;612 11,604 ::.s,55d -2S,3LS lq11 180,162 330,E62· 6eC82 't2e645 1Cj76 ll,CJ22 15 e661 27,503 14.9 32 218.990 339,9Sie • • • • • • T~E FClLCWIHG fiGURES ARE PROJECTED * ~ * * * * 1978 218.990 339e95iw - 31,499 29.~38 16,785 't6e723 - -10,322 1Y79 210,230 29'le6'lla - 35,663 33,3fl0 16,490 49,870 - 1980 lCJtll 212,5l't 202.~32 266,316 222a'c3l! - - 33eb96 ltl,Ell 16,731 60,614 - 2 -1 Vl \0 1982 180.145 180.145 - 20,10~ - 't2e292 'eltl28 15,233 57,525 - -1 12.239 51,967 - 1983 138.~16 13G,'t16 - - 'etl,616 9,165 -1 l'.HJ4 1985 97,798 62,2411 91,798 62,291 - - - - 35. 501 25,103 ~.280 .3,850 49,783 'e1t787 ~ 29,55J - 1 1986 36,569 36,58'1 - - ll.t56 2.270 f9,926 - -1 1967 18.932 Ul,~32 - - - 11,016 1.139 12,155 l9ti8 7.916 loCJl6 - - 2et39 490 3el29 l9H9 5.271 5.211 - 2,639 312 2,9~1 1990 2,639 2ttl'l - - 2a639 134 .2 t 773 • THIS COtUHN SHOWS i~E AMOUNT OF A"I1HMEIIC IMBAlANCE IN TH~ AHOU~T OUTSIANOING INCLUOI~~ UNUI~ililHSt~ ~HOM ONE YEAR 10 Vtlt NEXT. THE MCST CC~H(h C~USfS (f lHdALANCES ARE CHANGES IN EXCHANGE RAllS AHO TRANSrtk OF Df~lS fROM ONE CATEGORY 10 ANOlHER IN l~f 1A8LE. 0~1 L··l1u TABlE 2 - lAlk1: 11 : ~ l f'l-1 PAGt: 2l S~KVIC~ PAYME~TS. CC.HIT~fNTS. CIS~URStHENrS ANU ~UlSfANUI~G AHOUNfS Uf LX1EkNAL PUUL!C O(Ul PROJECTICNS 8ASEO ON [f8T C~lSTA~OING INCLUDING UNQI~BURSEC AS Of OEC. 31, l977 CEfT RfPAYAflf IN fOREIGN CUKkE~CY AhO GOODS (I~ THGUSANOS OF U.~. DOllARS) TYPE Of CREDITOR PRIVATE BA~K CkEOITS CkEDilCR CCUNTRY GERMANY, fEO.HEP. Of YEAR D~Bl OUTSfA~OING AT : T R A NS AC T I 0 N S 0 UR I NG P f R I 0 0 BEGINNING Of PERI~O OfHEK CHANGES ---------·------------~-------·---;--~----------------------------7----~----------------------:------------_, ' DISBURSED ; INCLUDING ; CCHHIT- a DiSBURSE- S E k \J I C E ________ _ ONLY :UNOISBURSfC~ P A 't t1 f N T S CANC(L- ADJUST- HfNTS z HENTS :-----------&-----------:-----------: UHIUNS MENT ~ oa PRINC IP.AL a INTEREST JOTAL 42) a3 • cIt • (5) : (6) (7J (81 t 9) 1CJ70 1971 2,86'3 lCJ72 3e060 ll,'e55 191 1973 2e468 68 68 2e4t58 1~.532 60,(]22 804 17 2.17 2~7 197't 3.100 l6~CI.a2 2!,215 l,lO't lltl lt488 l'i17S 2~~;-131 84eli8 lt 241 9tl80 lo603 57. 3't 1 3.~87 2 al6l 5,648 1976 14.052 15.528 -6,7uo 1977 76,584 5,261 7,140 12,407 7,'162 1lle223 le669 th070 3a452 1978 18.900 78,900 lle522 ij'74 7 • 4 ~ 4 • t l~E fOLLOWING FIGURES AkE PkCJECTED * • * * ** l C) 78 7S,900 78,900 1979 47,005 13.,l4't 'oil84 l7,32H -18,751 0'\ 1tle005 12 •. 't18 1980 34,'526 3'e,526 3,240 15,718 -1 0 19tH 24.585 9,9't2 2,362 12e304 21toS65 1 1982 16.405 6,180 1e691 9,811 16,405 8, UlO 1983 Be221 1, 078 9,258 l 8.221 8,180 1964 41 41 464 8,644 1985 2/e 23 3 26 21t 21t 2 2b * THIS COLUMN SHCWS THE AMO~NT Of AAll~HfTlC JHHALANCE IH THE AHDU~J OUTSTANDING INCLUDING UNOISdUR~tU tRCM ONE YEAR ONE fROM TO THE T~E NEXT. 10 CATEGORY MOST COHKCN CAUSES Cf IM~ALANCES ARl CHANGES IN EXCHANGE RATES ANO T~ANSFtk G~ DEHJS ANCT~f~ I~ U~E 1A8LE. _... 0~,.?.4/10 lAULE 2 - lAlHE 11:~7 PM PAllt 23 SERVILE PA~HE~lS. CC~MI1~E~1~. OIS~UHSEM~~IS A~O uUfSTANCJNG AMOUNTS Uf ~XTERNAL PUtlL'C O~HT PRCJ~CTICNS BASEC Ch [fUT CUTSIA~OlNG INCLUDING UNOlSUUkS~O AS Of DEC .. 31, 1977 OEfl REPAYABLE IN FOREIGN CURRENCY GGOOS A~O (ih THOUSAND~ Of.u.s. COLlARS) TYPE Cf CREDITOR Pki~ATE 8A~K CREDITS LREOITC~ CCUNT~Y ITALY YEAH OEBJ OUTSTANUING Al I R ~ N S AC T I 0 N S 0 U R I N G P E R I 0 0 OTHER LhANGES I BEGINNING Of PfkiOC z -·--------:-----------------------&-----------------------------------------------------------:----------------------- OlSBURS£0 : INCLUIJI~G CuHHlT- : DISbURSE- ; I S E R \1 I C P A 't H f N I S : CANCL:L- : AIJJUSl- &:: Of\LY ;UNOISBLRSEO: fo1Ef\lS : I'!ENTS :-----------:----------:-----------: LATJONS ; MHH ~· 1 PKlNClPAl : INTeREST ; TOTAl (1) c2 J : (3) ; (4 j : (5) : '6l : (7) ; 'u J : (C)) l0 l. .150 - 329 1974 36,352 56,833 39,3t3 14.143 leOOO 640 lt6te0 - -~.j8'J l(H5 41,359 'J1,7'J2 - leOOO 2e310 3e3l0 - -3,404 1976 52,635 86,324 tt r33t: 9.712 1;750 2.516 "se266 - -J,7Ul 1977 4t,056 86,339 - 5. 0.2 1 1e01J 47 - 1.2 72 li1319 - -l6tl74 1978 53.311 86,585 72.9 729 - 246 *• ••• • lhE fOLl(WING FIGURES ARE PRCJECTED • * * * • * 1976 1979 53,311 86,585 - 8a604 9.2~3 3,332 12.585 g> 1980 45.548 45,601 70,21'1 - 11,731 11,678 3tlti8 14,866 -7.113 1981 58.541 - 8,132 9,fl5 3,161 44alU! 1,8,4326 - 3,208 9,613 lle782 - . 1982 2.868 12.,481 1983 37,715 3~.315 - 1.600 9,t:oa 2,•H9 12 t02 7 2 19U4 29.7(]1 20,995 2'1,101 - - 8.112 1.647 10,559 1q95 20,995 - - 6t4il8 a.22a 1986 14.071 8,255 l't,011 tl,255 - - - 5,82.2 le310 891 6,713 1987 - 3,321 540 1988 4o935 3.838 'tt935 3,e3a - ... - 1. 097 3~0 3,861 1.447 1 - 1,097 lO • ~ • •* * l~f fCLLCWfNG fiGURES ARE PkOJECTEC * •*• • * 1~7H 20.219 20,21') - - .2,521 ! ,636 4,363 1979 1980 17.692 11,692 - - 2.521 1.599 ~.126 - 0\ l9,a 1 15,16" 15elblw - - 2, 521 1,362 3,889 -1 Vl 1982 12.631 10.110 12,631 10. 110 - - - le52l 1al25 3r652 1983 - 2.~21 689 3.416 - 1<;184 1.562 7.582 - - 2,521 652 3,179 -1 5eO!lS 5.055 - - 2. 521 415 - 1985 2.521 2o521 - - 2, 521 178 2,942 2e705 -1 • THIS COLUMN SHOWS T.-.E AMOUNT Of APUt-:HI:l"IC lf4BALANCf IN lt•t AHUU~T OUTSlArWING INCLUt.Htib IHWlSHU1\~:ol.:C f~OM ONt: YEAR TO THE NEXT. THE MOST CG~~C~ C~~SES ( f I~B~LANClS AkE CHANGES IN EXCHANGE kAlES AND TkANSFt~ CF D~UlS FROM ONE CATEGORY TO A~CIHfR IN lt~ lA6LE. 05/. 4/7U TABU: 2 - lt.Jkf: 1 L; 'J 1 P.·l PAGI. Lb ·SERVICE PA~ME~l5o CC.MilME~IS, CISBURSfM~NI~ AND UUT~IANCJNG AMUUNfS Uf tX(tkNAL PUBLIC UEUl PRCJECTJCNS BASEC ON [~tiT GUlSIA~DING INCLUO!NG UNOISHLRSEV AS 0~ UEC. 31, 1~11 DEST REPAYAOlf IN fUktiGN CURHtNCY A~O GGuDS tl~ IHOUSA~OS Of U.S. OUiLAKSJ TYPE Cf CREOirOR fRIVATf ~A~K CREDITS CR~OITCR CCU~lRV ~NllEO KINGOGM YEAR OE8T OUT5JANOING AT 3 T R A ~ S AC T I 0 N S 0 UK 1 NG P t R l 0 0 BEGINNING Of PERIOD UI"Hi:k O·ANGf.$ ---------:-----------------------=----~------------------------------------------------------ OISSURSEO 3 INCLUDING z CC~~Ir- : O~S6URSE- : ~ t R V I C f P A VH f N T S CANCEL- AOJUSl- ONLY IUNOISBURSfD3 ~E~TS I HENTS :-----------:-----------:----------- lAJlGl\S MENT * UJ 12. ·( C3 I ,., PHINCIP.Al ; INfEREST TOTAL 151 ; (6) ( 11 ( 0) (7 PC'\ PAGE 29 S~RVILE PA~HE~lS, tC.Hil~E~T~, £1~fURSEMtNT~ ANU OUT~fANCING AMOUNTS Ot ~XlERNAL PU~LIC UEBl PROJECT1CNS eASEC CN CtUl CUlSJANUING INClUOING UNOISUUR~ED AS Of OlC. 31, 1~77 CEeT RfPAYAfLE I~ fCRE~G~ CURRENCY ANC GGUOS II~ JHOUSANOS Of U.S. OOLLAkSJ. TYPE OF CREOIIO~ PRJ~AlE eA~K CR~OITS CR~OilCR COUNTR~ UNITED STAllS Yf:AR DEBT OUISTA~DJNG AI a 1 R A ~ S AC T I U ~ ~ 0 U R I N ~ P E R I 0 0 UTHER CHANGl:S ·: BEGiNNING Of PERIOD ---------:----------~-~----------:-----------------------------------------------------------;----------------------- DISBURSED : INCLUDING : CC~HII- : OISuUR~E- : 5 E R \1 l C E . P A \''H EN 1 5 : CANL.El- : AOJUSf- ONLY :UNDJSI;lURSfO; fl Et\JS HErHS Ht:NT * I :-----------:-----------:-----------: LATIONS : I ' PRINCIPAl ; INTEREST : TOTAL fl) a '2 I I • c 3) I ''t) : l5J : ( 6) ; c1 J : { 8) : '9) l'j7Q - - 38,231 1971 1972 - 38,231 39,900 76,131 - 1t089 1e08'i 76.131 lS,l31 11eie5C ]lt,500 8,352 6,607 11t,959 1973 14a2.219 l'e1,229 56,o35 20,364 11,6~2 12.487 2'se329 74 -3 1974 150,7~8 191.945 226,8~4a 110,124 30el't1 16,879 47,026 ~e,a~t 2, I- :-----------:-----------:-----------: LArlONS : HENT * HI ; (2) ': I3 I I : ''d z fJ R I NC I PAl : INTEREST : : (51 : (6j : TOTAL : '7. CUI : ( (j J lANG£:S BEGINNING Of PERICO ---------:--------------~--------:-----------------------------------------------------------:----------------------- OJSeURSEO : INCLUf.llt\G : ((f.1Hif- OISBURSE- Sl::kVlCE P A YH E N 1 S CANCt.l- ADJUST- ONLY :UNOISBURSEC: 11ENTS HENTS :----~------:-----------:-----------: LATIONS MENT "· PRINCIPAL INTt:REST TOTAL IU '2) C3) c4) ( 5) Std '7. t 6. ( ') ) 1970 29'! 54,2.21 294 1971 294 54,521 59.126 67.622 6(l l,trl3 1.473 1,918 1<:172 85,38'1 115,501 134,336 .. 120.779 11,233 8,17! 19,404 -11':J 1<:173 197,006 231,B35 550,9!16 2't5,973 1~.213 19.2 24 31;,437 74 -to, l~l, 1974 426,115 162.741 't85,tile9 254.053 37,206 41,441 78,6't7 5,100 ~l,.J2L 1975 651.265 1.241.612 102.103 231,294 37,280 37.760 75,060 6,Le93 -37,'124 1976 lll9.501 le266,616 126.436 242.,421 23,865 33,923 51a788 lO,ol5 -l8,7S2 1977 1.02~.559 lt331.f22 1.123 ':)5,207 21,831 42,222 64,053 35,570 1978 1.126.231 lt352eti6't • • *• • • l~E FOllCWING fiGURES ARE PRCJEClEO * *** • * lll78 1979 1.126.231 844o693 lel52eHl'e 9B9,5B4 - - 81.,557 !02,436 76e432 258eB68 - .-LdO,oo4 1980 141 • .r. c;s 8l'ee'iB1 - 11.400 't8e57tl 11~.591 67,302 2~1..699 - - 1981 597,040 621,954 - l93,034t 58.~58 251,292 - 1 0\ \0 23,3~3 l't't,'t51 45.096 189,547 - 1982 2 1983 415,t;05 3te0,761 477,505 - leL0-'1 136e1't3 33.~52 170,695 - -1 l9f:l4 3te0,761 - - U8el78 23,670 141,8te8 - l 1985 222.584 222,58~ - - 80,554 15 tlOO 95,654 - 2 1986 142,032 142,032 - - 58,515 9al96 61,711 - 1987 83,520 83,52() - - 34,561 5e439 40,000 3 4tJ.959 ls8,959 - - 22,6'il 3,109 25,800 - 1988 1989 26,26«; 15.356 26,269 - - - 10,914 1,632 12,546 - 1 l 1'990 1e79 ~.6tUt 1 'H13 12,8'e9 12,649 'e,283 198/e 8,566 1t 031 '5t31'e 8,566 ~.283 o56 1985 4,283 lte939 'ae283 4,283 21)1 le,56'e ~ THIS COLUMN SHOWS T~E AHOUNl Of ARIIHHETIC IHBALA~CE IN TH~ AHGUhT OUTSTAHOI~G INCLUOJ~G UNUI~UUR~fL ~~CM UNl YEAR TO THE NEXT. JHE MCSl CO~~(h CAUSfS Uf IHHALANCES ARE CHANGES IN EXCHANGE RATES AND T~A~Sflk Lf OEUf' fRO~ ONE CATEGORY 10 ANGT~fR IN l~E 1A6LE. ·' O'J/2.4/1tJ li9 2e70~ 'llti 586 1961 l96Q 10.333 li.05's l3t37it 12,186 - - l,9i){J 1.13.2 ltl87 664 1.522 ltB51 -1 l --.:J 0'\ l 7 Pr~ PAuE )':J ~ERVICE PA~ME~TS, CCtMITMENTS, CIS~UKSfMtNl5 AND UUJSiANOING AHUUNlS Of tXIERNAL PUeLlC O~Uf PROJECfHlUS 8'5E(J ON Ct81 .''!SrA~OlNG lNCLUOl~~ UNiHSI:lUHSEl: AS Uf UEC. Jl, 1~77 DESI R~PAYACLE !N fUREIGN CU~RENCY A~O GCOOS tl~ THCUSANOS Uf U.S. COLLARSI TYPE Of CRI:OI lOA i .T I LATERAL lGANS CREDITOR C[UNT~Y ARAB ~ANK-AfRlCA DEV V l:AR DEBT OUTSTANDING Al : 1 R A ~ S AC T 1 0 N S U U R l N & P E ~ 1 0 0 8EGINhfhG OF PEAIOC ChANGt: !;. 01111.:R _____ . .,. ---: ________ ,. . . _____________ z -;-- --------- ---------·----------- ---------------------------:------------------------ ' DISBURSED ; INCLUDit.(; : CGMMIJ- ; DIS8Uk5E- : S ~ H \1 I C t: P A Y H E N T S : CANCt..L- : ACJU~T- CNL't :UNlJJSBLRSEOa HENTS : t4ENTS :-----~·==---:-------,:--:-----------: LATIO~~ : MtNT • PRINCiPAl I NH:tu.;s r : TOTAL .: ( l~ ~ 2! (3) (41 (~:d (td '7) un ' CJ) 1970 1971 1972 l'i73 l91't 1975 1976 10,0.(]0 1'377 21 21 10,000 25 1:978 25 tc.co·o • ~ • t t • " lhE fOLLCWiNG fiGURES ARE PROJECTED • • • *• * l00 - sa l'H9 - 50 - - 1980 2e500 1,ooo lO,lJOO JO,COO - 4,5()0 3,000 - - 138 138 - - ~ --:j 1981 1(}, 000 io.ooo - - 1 330 295 391 295 - - I l qij 2 121 1983 Cj~670 <13,320 Ci,61Cl - - - 350 383 733 1984 5 735 1985 8,580 a.sao - - 390 33CJ l'Hio 1987 8,190 1,1ac 8el9C - - - 410 324 729 734 .tqo8 1,350 1.160 1.3~0 - - - 430 ~'15 l07 737 290 1989 1990 he905 6 ·'~55 6,905 - - - <450 212 735 722 l9CJ ·a 5,c;sc -:6.~t55 - - 415 254 129 1992 5.980 - - 495 ~!34 729 l'l«J3 5t4ti5 "·~65 5,.taa5 ~.965 - - - 520 ,;H't 734 535 193 1994 4t430 olat430 - - ~60 172 128 .l9~5 1996 3,810 3,285 ~.B1C - - - 58!> 1 It 'J 732 734 1997 2.t:-ti0 3.285 2.tao - - t05 125 730 - 630 101 731 * fHlS COLUMN SHOWS Tt~ AMOUNT Uf ARJlHHEliC lHOALANCE IN THE AHOU~T OUTSIANOING iNCLUOfN~ UNDISOUkS~U FROM UNE YE~R TO THf NtXT. THE ~GST CC~~(~ C'USES Cf J~HALINCES ARE CHANGES IN EXCHANGE RATES ANO IRANSftk Cf OEblS FRUM uNE CATEGORY 10 ANOTHeR IN 1hf lAHLE. 05/Z.4/7U J AHLf. 2 - lAUU: l1: ~I P1-t PAGE 4U SERVICE PA~HE~TS, CC~Hil~fhTS, CISBU~SEMtNTS AND uUTSTANGihG AHUUNJS Uf EXTEHNAL PUBLIC UEUT PROJECTICNS BASED CN C£81 OUJSTA~OtNG lNCLUOIN~ UNU!S6URSEO AS uf DECo 31r 1977 OE81 REPAYABLE I~ f~REJGN CURRENCY A~O GCUOS (I~ THOUSANDS Of U.S. OOLLARSV TYPt Of CHEOIJ(R ~ULTILATERAL LOANS . CREOITCR COUNTRY EUROPEAN OEV.FUNU YEAK DEBT OUTSTANDING AT : i R A ~ S A C T I 0 ~ 5 0 UR I N G P E R I U 0 orttER CHANu(.S BEGINNING Of PE~JOC : ---------:---------------~--~----·----~------------------------------------------------------:----------------------- s OISBUJlS£0 ; I~CLUCJNG & COHIUT- : OI.S6URSE- ; S E R ~ I C E P A 't t1 E N T S : CA.NCt:L- AUJUST- Ot.LV :UNOIS8URSEOz ~E~TS : ~fNTS x PRINCIPAL INTERE:,T :-----------3-----------a-----------: lOfAL lATIONS MENT * Cl! &21 t aa '"~ ( 3) (51 ( 6) . '71 c':i • 1970 a.s~~c 1971 a,85~t 76H 1972 CJ,f't2 3e862 178 1973 3e83!i ~.ezo be 848 1 f 007 197ft 10,810 iC~32l le'i99 16 lr 010 1975 11.684 13,836 367 ~73u 1.976 lle't06 13.106 64jj8 16 r . ::.) 21 1971 12.121 13.127 998 17 17 1 ,lll 1978 llte214 l'ea23CJ • ~ • ~ • ~ T~f fOLLOWING FIGUR~S ARE PROJECTED * ~ **• * 1978 lloe2l4 14,2343 - - 13 ... - 263 263 l97Ci 1980 14.221 14rc23~ ll.ae239 - 13 - 263 2b3 - - ~ co lie. 2 3-9 65 2o3 328 - - 1981 14.174 14,17/o - - 130 258 96tJ - 2 1982 l3,1.alt6 lle'e'tt - - 130 244 974 - -3 1~83 12.713 . 12.713 - - i 130 231 9t>L - 3 1984 llrCi86 lle'i66 - - 730 211 947 - -2 1985 l90b 11.2!i't 10.526 11.25~ 10,526 - - - - 130 130 201 188 931 910 - - 2 -2 1987 9,79~ 9,19'- - - 130 174 904 - l 1988 ~.Ot:5 "1.,065 - - 130 161 691 1989 8,335 Ha335 - ... - I 130 146 876 - 2 1~90 1,601 lell01 - 130 133 863 - -1 1991 1992 . 6,876 6elit6 6eS7ll 6 ellt6 - - - - 130 130 120 104 &50 - 634 1 1993 s.~t11 5." 11' - - 730 90 820 1994 199~ lt,687 t.,D68J - - - 130 78 808 3r'i5l 3.~51 - 730 62 792 - -1 1996 3r226 ~.22t: - - 130 50 180 - 1 1'997 2.4~1 2,.~t91 - - 130 34 7i.J4 ~ THIS COLUMN StiOWS THE A~CUNT Of AHITHHETIC IH8ALANCE tN THE AMOU~T OUTSTA~OING INCLUDING UN03SBUK~£0 ~ROM ONE YEAR TO THE ~EXT. THE HGSJ CO~~C~ CAUSES Uf IH8ALANCtS ARE ChANGES I" EXCHANGE RAIES AND TRANS~ER U~ 0~815 FROH ONE CATEGORY TC ANCT~fR I~ It£ lAHLE. 1 ABU: 2. - lAARE , 0!.. -'t178 11: j 7 PM SERVICE PAVMf~TS, CCtHJl~E~lS, tlSfUHSE~~NfS A~O uUlSTANCING AMOUNTS Of EXTERNAL PUOLIC UEOI PALF. 'tl PROJECiiCNS ~ASfO CN [f~l (UlSTANulNG INCLUDING UNOIS~URSEO AS Of DEC. 31, 1~77 CEeT RfPAYA8l£ I~ fUREIGN CURkENCV AhO GOODS CIN THOUSANOS OF U.S. OtlLARS) TYPE Of C~EOITC~ ~ULlllAlfRAl LCANS CR~OIJOR COUNTRY lUROPEAN INVESf d~NK YEAR Of8T OUTSTANDING AI : T R A ~ S AC T I 0 NS 0 UR I NG P ( R I 0 0 aEGINNING Of PERIOD a : ufH(R CHANGe~ ---------:-----------------------;-----------------------------------------------------------;----------------------- DISBURSED : .NCLUOING : CCHMil- z OISSURSf- : S t: R V l C E Ohl V :UtUll SUURSEC z Hft,TS : P A Y H E N T S : CAI'4CEL- : AUJUSl- MENTS -----------:----------- -----------: LATIONS 3 a : PRINCIPAL : INT ERt:S T HENT • HI I C2 I t 43 I : TOTAL : c~w• (51 : 1970 (6) ( 71 ; liU (9' l '171 - - 11, 90o 1972 2,15.3 18,'il5 - 2e582 - - - - l,Ob9 1~73 15el26 1CJ,2l0 - 12,962 2.716 - - - - - 255 1914 20,568 21,621 22.128 355 lt,'996 - 2.,3CJl 1975 ll,i35 'tO,l61 - 698 ,l, 2~ 8 1,60] 6,799 - 2,008 1976 l't,32l 36.~49 - - 3elQ6 1 '"' 5" lte702 - -1.064 1977 l2o2llt 3~.3-\2 lt261 5,001 3.~01 1t205 4,371 - 1,059 1978 14.631 ]J,(J25 1.180 lte58l - tH7 • f • • • • T~f f~ltC~ING fiGURES ARE PROJECTED • • • • • • 1976 14,631 33,C25 - 11.297 ~.caz 1979 1980 19.846 21,46 "I 26.9't3 21,120 - - 6,844 5,222 1,480 2e300 7,568 1.522 - -1 -.:j 253 1981 1982 19,321 19.321 - - 2e't00 2tll3 2,139 ls91'o 4,539 - - 1 \0 1983 17.208 11.204! - - 2tlll l,o97 4,027 - I 1984 15,0«.;5 12,982 15,095 12.'i82 ~ - - - 2.113 l.f480 3. 810 3,593 1985 LO,S64i 2.113 lt264 3al77 l9U6 10,669 - - - 2.113 ! .046 - 1987 8,751 bt6'e3 8,151 6,6't3 - - - 2.113 830 3tl59 2. '9/o 3 - -1 1 .2. 113 613 1968 "'53 c 't,530 - - 2e72o 1989 2e1Ul 396 1990 2e411 2t417 - - 2tlll 2a509 1991 304 30'o - - 101 179 1~ 2e292 1992 203 203 - - 101 10 116 - 101 101 - - 101 4 111 1.05 -1 * TH1S COLUMN SHOWS THE AHOUNT Of ARilHHETIC IHBALANC~ IN THL AHOU~T OLfSIANOl~G lNCLUUlNG UN!liS~Uk~tO FACM GN~ YEAR TO THE NCXT. THE HOST CUHMC~ CAUSES tf IMBALANCE~ AR~ CHANGES JN EXCHANGE RAI~S AND THANSflR Of DEHTS FRUH ONE CATEGORY TO ANCTHEA IN ltf TABLE. \J>j/'.!.•t 17~ TAULE 2 - iA1Rc 11; S 1 PH PAGE 41. SE~VlCE PAVHt~TS~ CC.Mil~E~rs, CIStUHSEHENfS ANO ~UTSlANCI~G AMOUNTS Uf tXlERNAL PUbLIC UEUT PROJECTICNS BASED CN Cf8T CUTSlANUING INCLUDING UN01SbUNStD AS Of UEC. 31, 1977 CfflT REPAYABLE I~ fGkEJGN CUkHENCY AhD GOODS CIN THUUSANOS Of U.S. OOllARSA TYPE Cf CR~DJTC~ ~LllllJTtRAL LCANS CREDITOR CUUNlRY I ORO YEAR OE8l OU1SJANOING AI ! P. A N S A C T 1 0 N S 0 UR I U G P E P. I 0 D OHU:.K CHANGl: S : Bf~INNIN~ Of PERIOD ; ---------;-----------------------:----------------------------------------------------------- : DISBURSED : INCLUDING : COMMIT- ; DISBURSE- : S E R V I C E P A VM E N J S ----------------------- CANCtl- : AUJU~l- ONLY IUNDISBURSEDa ~ENTS : ~ENlS :-----------:-----------:----------- lATlUNS ; HE~r * YRJNCIPAL z INTEREST ; TOTAl Ui I (2) «3 I C4 I '51 : c 6j : : '1) C H) : (9 » I 1970 .6. 301 6el01 1.310 J~3 1,66::J 1971 .l.ee4.:i91 4e991 1,561 1972 293 lo85Je 3,~30 3,430 1973 'i80 191 lel7l 2.450 2.~50 ~eo 132 197-4 1e47G lrll2 l.'a70 ~60 73 1,05 3 1975 "t90 ~90 lOOoOOO ll.77b ~90 629 1.319 1976 11,776 100,000 20,591 l'J77 32.367 3.444 3,444 100,000 2/t,OOO 3,971 le97l 1978 56,361 lOO,QOC t • • • • t THE fOLlUWlNG FIGURES AHt PROJECTED * $ ~ ** * 1978 1979 ~6.367 lOO,QCC koo,ooo - 27,489 - s,a::n 5e833 1980 83,856 - 8.290 5ec.i55 7a0l3 12s968 - - co 1981 86al91 87,60() 94.C45 - 1,054 oe't.ft5 7 el 12 13,557 - - 0 1982 Ble60C ac,c35 - - 6a'ic5 6,871 13,836 1983 80,635 73111100 - - - &7.535 6,303 13,838 73,100 - a., 1so '5,686 13,838 19S4 1965 6lt,'950 6 .. ,950 - - 6e8.15 5,023 13,838 1966 56.135 's6,600 56 tll5 46e600 - - - - 9,535 10,315 4e304 13,lB9 1987 3,526 13,841 1988 36,285 25,125 36e265 - - 11.1()0 2a68't l3,8't4 1989 13,060 25,125 - - - 12,06~ 1,773 [3,838 13e060 - 13,060 789 13t849 ~ THIS CULU~N SHOWS THE A~CU~T Of ARII~HtTIC JMdALANC~ IN TttE A~QU~T OUTSIANUING lNCLUOlNG UNUI~SUK~EC FROM ONE YEAR TO THE N~Xlo THE HCSJ C~H~CN CAUSES lf lMtiALANCfS ARE C~ANGES IN EXCHANGE RATES AND TKAN~fER OF OEOTS f~OM ONE CATfGORV TO ANOI~f~ I~ l~f TAblf. TAOlt 2 - lAlRl O'.J/24/7t1 ll:57 f•:-t SERVICE PA,MENTS. ((~MIT~E~TS. CISBURSEHENT~ ANU UUTSTANCI~C AMOUNTS Of tXltKNAL PUHLIC UtOT PJ\Gl: ~t.1 PROJECTICNS BAS~O CN [fBI CUlSTAhOING (NCLUUI~G UNO!SbURStU AS OF UEC. 3lr !977 CEfl HEPAYA6LE iN fO"EIGN CURRENCY A~[ GCOOS fiN THOUSANDS Uf U.S. OGLLAHSI lYPE Cf CREOI10~ MULliLAJEHAL LOANS CREDllOf{ COUNT~~; IDA YEAR . DEtiT OuTSfANOING AT BEGINNING Of PfRlOC T " A N S AC T I 0 N S 0 ,. I}( I N G P c R I 0 0 (JlliER CHANlitS ---------:-----------------------:-----------------------------------------------------------:----------------------- DISOURSEO ; INCLUDING : ·CCMMIT- : OISBURSl- : S E R V 1 C E P A Y H E N T S : t~HCEL- : ADJU~l- O~LY jUhOISBURSEC: ~E~TS : MENTS :-----------:-----------:-----------: LATIONS : ME~T ~ . PIHNC!PAl : INTEREST : fOlAl (1) : (2. : {3) ' C4 I : '5. ; ( b l : '1, : uu : ( 9) 1970 1971 - 7ft B 6e000 s.ooc 1ft.B - 1 1 11.000 1972 2,6't9 31o,500 l3c5Cl0 l'iaOOO 2el01 - 22 22 1973 B,39l 53aS5B a,soo 5a090 - 13 13 - 45a 1974 lb,21l 6,627 . - 136 136 - 1975 llJ76 26,321 63 a 50 5 73,505 lQ,Q(jQ 52,000 10,050 lle'so6 - - 139 139 le047 37,785 125.503 !19 119 - 1977 5.C.,615 l76,(j0~ 50,50C 16.829 - 294 294 - -2. l1 L 1992 178,346 - - 2e"2; 1,352 3,556 178,346 - 3,776 1993 175.306 115,306 - 3e040 le334 1994 112,G96 - - 3,210 4,) 74 1995 168,685 172,0'i6 - - 3,41() 1,)08 4e51H 1996 l64e's95 lbB,t85 - - 4el90 le285 •h695 -1 1997 159,329 l6'te495 - - 0 5e165 . 1,2 58 5t448 159.329 - 5,820 le224 lel83 6t3H9 7t003 -1 1 * ThiS COLUMN ShOWS THE AHOUhT Of ARIIHKETIC IHDALANCE IN THE AMOUNT f«CN ONtO~f.TANOING INCLUDI~ UNOI~6UHSEG YEAR ONE fROH fO THE NEXT. 10 CATEGORY THE HGSJ [O~~C~ ANCTHfR TABLE. Of lf8ALANCES ARE CHANGES IN EXCHANGt RATES AND TRANSftR Of ~~diS IN T~f CAUSES \ TAI:il£ 2 - ZAIRE U';/1..4//tJ 11: ~ 1 P;-t SERVICE PAlHEhTS, CC.HIT~EhfS, CISBURSEHENJS ANO OUTSTANCING AHOUNTS UF EXlE~UAL PUHLIC OlJ( PAGE 44 PRCJfCTICNS B'SEt CN (f8T CUISTANOING 1NCLU01~G 0 UNUIS6URSEO AS Of tiECa 31, 1977 O~BJ REPAYASLE lN tORtiGN CURRENCY AhO GOOOS CIN TUOUSANUS Of U.S. UOllARS) TYPE Gf CAEOIJO~ ~ULJILAIEHAL LCANS CREOITGR COUNTRY INT. COffEE UkG. YEAR DEBT OUTSlANOING AT : I R A h S A C T 1 0 N S 0 U R I N G P E R I U 0 : 8EGJNUING OF PfR!OO • 0 IW:R ChANGE!> ---------:-----------------------:-----------------------------------------------------------:----------------------- DISBURSED ~ INCLUOING 1 CC~HIJ- : DISBURSE- : S f H ~ 1 C f J P A V H E N T S : CANCtL- : AOJUST- O~LV 3UNOI~6URSfDf ~f~TS ~ MENTS :-----~-----:----------- -----------: LATIONS : HENT ~ : a z s ; PRiNCIPAL : INTEREST rOTAL z (11 : '21 : &31 : c~• z •sa · a loa C71 : cat : C9) 1970 1911 !972 1973 902 1974 902 902 fi02 1975 902 902 1976 S02 902 1977 902 902 1978 902 902 * f • t • t Tbf FOLLOWING flGUHfS ARE ~kCJECTEO • • • * * • 1978 1979 902 821 ~02 821 - - - - 15 119 21 32 102 151 1980 708 lOS - - (X) .1981 1982 1Y83 l9b't 589 't10 351 sac.; 410 351 - - - - - - - 119 119 119 15 21 22 1.1 13 146 141 136 88 1\) I 21t 21t - - 31 l-1&5 215 2~5 - - 31 11 io 42 1986 IY61 215 18/o 215 184 - - - - 31 a 'tl 39 l 31 1988 153 153 - - 31 1 36 1989 1c;yo 123 92 123 - - - 31 6 5 37 36 92 - 31 3. 1991 1992 61 31 61 - - 31 2 lit 33 31 - - 31 1 32 l * THIS COLUMN SHOWS THE AHOUNT Uf A~lltHETJC IHtlALANCE IN lHt AHOU~T O~TSlA~Ol~G INtLUDI~G UNOISaUKStC tkL~ ONE YEAR TO TrlE NEXT. THE MOST CCMMCh CALSfS Cf IHHALANCE~ AkE CHAN~ES IN EXCHANGE RATES A~O ~RANSFER OF DEBTS fROM ONE CATEGORY 10 ANOT~ER IN ttf IAHLE. O~IL •• li:J (Atilt 2 - lAif 1961 12,260 12.260 - - 47~ 248 727 - - +=- lq62 11.781 11.181 - - 't1CJ 22'l 708 - -l 1983 11.301 11~301 - - ~ lq 210 689 - -1 1984 10.821 10.621 - - 419 190 669 - -1 1985 10.3~1 10,3'tl - - iel4 171 645 1 1 ,663 1,~68 13,503 1.021 1918 25elt49 3(j,800 -2,642 t ~ t • • • T~E fCLLCWJNG fiGURES ARE PRCJECTEO * •. * • * • 1q1a 25.~49 3 ~. \100 - 2tl9!) 1a133 881t 2, 611 - 1<179 1900 23,852 35,809 - 2.876 1.166 754 2,5l0 - -2,258 ()::) 19tH 21t,961 26.412 34e04t4 - .3 I 27 C lelb6 616 2,384 1 Vl l~ti2 32.278 - 2.507 1.114 483 1983 27.203 30,505 - 98't 11!898 34 tl 2r257 1984 26,26'J 2tl,601 - 672 l,S82 211 2t246 2,093 - 1985 25,01Ci 26,126 - 518 1.175 93 - 1 !q86 23,883 2'te952 - 465 392 6 1,1:168 - 1 23,«115 24,55Cj - 390 313 - 3'J8 - -1 1~87 1968 2.1e.050 23.867 24,245 - - 195 359 - 313 3~9 - -1 23,SS7 - 636 - - 1 1<189 1990 2lt21t9 22,615 23,249 - - - . 636 - 636 636 - -2 l 991 21~~1'·1j 22.lll5 - - 636 - 636 2 1~92 21,919 - - 636 - 636 - 1993 21.31t't 20.708 21.34/t 20,108 - - - 636 - 636 1 l/ 4/7H TAbU: 2 - lAlkt 11<:;1 PM PAGt: 4tl SERVILE PAVHf~TS, CU~HllHfNISe CISUUH~EHENTS Pk0JEC11GNS tiASEO CN CEUl C~1SIA~OlNG INCLUOI~G UNOI~8U~SEG AS Ot OEC. 31, 1977 U~OT HfPAVAHLE IN FURciGN CURRENCY ANU GOODS - ANU OU1SIANOING AHGUNTS Of ~XTERNAL PUbliC OfUT CII\ HfCUSA~uS Of t).S. COLLARS) TYPE Cf CMfDITO~ l!ILAlEHAL LOAN!) C~EOIICR CCU~lRY C~INA, P.l-t. ·of Yf:AH OEBT OUTSTANOING AT T R A N S A C l I U N" S OUkiNli P E R 1 0 ll OTHER (t1ANGES 8EGINNihG Of PERIOD a ---------:-----------------------;-------------------------i--------------------------------- : DISBURSED·; INCLUOJhG ; CC~HIT- a OISBUR~E- : S E R V I C~ P A YH E N T S ----------------------- CANCEL- : AOJU~l- ONLY :UNOISBURSEOa ~EhTS : MENIS :-----------:-----------1----------- LATlUNS : MENT • Ul t2l PRINCIPAl t:H INJERE!)T ; lie) TOTAl (51 (61 (1, CtU C9l 1910 1971 1972 1913 100,t5'5- -l,u5~ l'H4 #i'l,OOO a, tH-6 1975 1Q1o816 2,691 -6,086 1976 2.5~3 101,130 ~1.501 4,652 1977 ~5.851 l06o382 pQ,8ll lrH44 1978 108,226 lt18e226 • 4 • • • • thE FOLLOWING FIGURES ARE PROJECT~D • • * $ • * ia97:i 1976 13.360 11 11 -131t llt~~91 52.055 't0,69l 1977 51.188 98 98 -J,426 63,120 46,11'1 ~7.806 3,071 1978 l03,'j01 115,372 3.071 ~.~33 ~ 4 ~ 4 • • T~E fOLLO~ING FIGURES ARf PRCJECTEO • • *•*• 1978 I03e'iQl 115.372 It tl 02 1e379 6,737 1~.116 1.979 97.611 IO'e,979 1()2 It D -). 014 1980 l.t20 6,226 13,646 ():) 91t,O'll 'il .. 357 2,659 8e216 6,074 llte290 -2. -.:J 1961 88,534 89el't. 607 12,'e80 5,531 18,011 1982 76.660 76.~60 -l 1983 12,528 lteb68 17,196 b4. 132 64.132 1984 12,580 3.129 1975 Ch975 18,880 le059 2,739 560 210 110 - -1,56.le 1976 11.201 17,815 61te648 549 221 2.41 468 - 6. 14& 1977 lq7a 12.18'l 17,503 88.188 10~.3o1 9,225 2eB58 - 1S9 159 - ll,75ft • 1 • • • • lHE fOLLCWING fiGURES ARE PRCJECTED **• •** 1978 1979 11,503 29e31ilt l0 1h361 101leli82 - ~ 12.725 25,259 lt't4 502 505 566 949 1,088 - - -44l 2 ():) ():) lij80 54elC3 101,'.182 - 27,335 .... 7,530 2.281 9,623 Hl8l 13,'.101 l0Ga'e46 - 16,509 7,536 3,300 to,aJb 1982 82,814 92,91! - 9et158 7,536 4,018 11,554 - 1983 8!>' 1 Cj 1 85,.315 - 178 7,149 4ei112 ll.lbl 2 1'.18/e 1 '.Hi5 11.628 69,565 7le62 8 6'1.565 - - - - t 8,060 8,105 3,68't 3,198 11.7't't 11,3::)3 - -3 19B6 1987 6l,Le60 53,521 61e4ll0 5.3. 521 - - - - 7,Ci39 8,193 2.712 2,231 lO,b5l 10,430 - -2 l1 PRCJECTICNS BASEC CN lfB~ CUlSTA~OI~G INCLUOlhG UNOISH~RSED AS Of DEC. 31, 1~77 OE£1 REPAYABlE I~ fOREIGN CURKENCY A~O GCUOS (I~ THCUSA~D~ Of u.s. DOllARSt lYPE Gf CREOIJOR OILATERAl LCANS CREDITCR CGUNT~Y JAPAN YEAR OE~f UUlSTANOJNG AT l R A ~ S AC T I 0 N S 0 U R I NG P t: R f 0 0 OTtiER CHANt;L S : BEGINNI~G Of PERIOD ; ---------1-----------------------J-----------------------------------------------------------:----------------------- DISBURSfO : JNCLUOlNG : CC~HIT- DISBURSE- : S E R V I C ~ P A Y H EN I ~ ~ CANCEL- : ~CJU~f- I ONLY :UNOISBURS£0; ~EN1S ; MENTS :-----------:-----------:-----------: lAfiONS : MtNT • PHINCJPAL a INTEREST : TOTAL (1) : (2) E • (3) : (4. 0 (5 J J Hd ; " '1) '6) : '9) 1 'HO 1971 - -: 1 '172 1973 - .. - 1.26e9ll3 - - - - 1914 - 123,185 - - - - .- - -3,778 -6,555 1975 1976 - ll~.t30 - - - - - - -1, 5tH - ll3,0't3 - - - - - - 4,161 . 1977 1978 - lllefO~ l't3,145 - - - - - - 25,Cj41 • 4 • • • 4 IHE ~Cll(WING fiGURES ARE PROJECTED • • ~ • • • 1978 1979 - - 143.145 - - - - - - - co l"l.l't5 - l'ee372 - .ft79 479 \0 1980 14.372 J4tle145 - 22~t919 - le339 lt339 1981 !982 31.29(] 70,801 !"3e11t5 139,152 - - 31,503 le993 2.142 6,735 "1. 92 1 1, 'Hlb 4,350 12,336 1983 1Ule1l5 13le16t - 12. (&<) 1 7,986 'te773 12,7~9 1984 ll5;,'t46 123.780 - ti,33'e J,Cj86 4a6!6 - 1985 lUi, 195 115,195 - - le986 4,552 12,602 12,53U 1 1986 1987 107,809 99,823 101,~09 - - - 1.~86 4,232 12,218 1988 91.837 '1~.623 - - J,c;s6 3,913 11.899 t989 83.851 91,831 - - leS86 3,594 lleSdQ 1990 83,851 - l1Ci86 3,274 11,260 75,665 15. 8~ 5 - - 7,c;86 2,955 lCJ91 1992 6711880 59,89'e 61,85(] 5fi,ti'i't - - - 1,986 2,635 10,9'tl 10,621 -· le986 2e316 1993 1994 51,908 51,908 - - le966 lt99t 1J,302 9,962 19q5 iw3o922 3~.936 "3,'322 35,936 - - - - J 7,986 1,6 77 '}, btd 1996 7.~86 lt35d 1 ~ .. ~fRVltE PA~MEN1S, CC~HI1~E~1S, tiSHURSr'f~TS AND OUTS(ANOING AHLUNTS 0f lXJfRNAL PUULlC DEbT PRCJtCliCNS BAS~C Ltd [ifl (UTSTAhOING INCLUDING UNOI~BUKSEO AS Of DEC. 31, 1971' Ot6T REPAYABLE IN fOREIGN CURRENCY A~O GOOOS (l~ THCUSANDS Of U.S. DOLLARS) TYPE Of CREOllOR 8llAIER~t ~OANS CkEOITCR COUNTNY LIBYA YEAR DEBT DUTSlANDING Ai I R Ah S AC T i 0 N S DU R I N G P E R I 0 0 OJ HER CtiANGES BEGI~HING Of PERJGC ---------:---------------~--------:----~-------~------------------------------------~---------:----------------------- : OtS6URS~O : J.~CLUD~~G : cou~ n- : o J seuRs l:- S E R V I C E P A VH E N T S CANCfl- AllJlJST- 3 ONLY a~NOISBURSfOJ ffHHS 3 11ENTS :---------~-:-----------~---------~-: lATI ONS MEt·.a ~ PRiNCIPAl iNTt:REST z TOTAl {U • 2) ~ l'tt '3(5) Cot llt &t)) ( 9) 1~70 1971 1972 1973 1Cj1ft PHS lOO;~CCQ - l'h!>OO - Bit U4 !1176 19.500 100~000 26.800 - 296 298 1~11 le6el00 :UHleCOO - 53.700, - 598 598 1978 100,000 lOOeOOO ~ • • • • t THE f~LLCWING fiGURES ARE PRCJECTEO *•• & ** 1976 lqJg 100.000 100,000 100,000 lOC,QOO - - - ~ - 5,957 700 7,883 13~840 700 - - \0 0 1960 1961 94" Olt3 94e043 - - ~ - 6o4~3 7e397 13,840 - l I 87.601 e1.60I Os~66 6.,871 ll.a 39 - -1 1982 19tH 80,632 7le096, 80.632 73.09~ - - - - 1s!:3~ 8,152 6,303 Se68Q 13,840 l],tj-40 - l 1984 b4,94le 6.ioe94't - - 8,611 s,o2J 13,840 - -L l9U5 5~el26 56.126 - - 9e53l 4e303 !3,840 - 1 1986 4b,590 46,590 - - 10,315 3,525 13,840 1987 1988 36,275 25.118 36e215 25.118 - - - - 11.151 12,067 2e683 1,773 lltS'tO l3eb40 - l 1989 13.052 lle052 - - 13.052 1GB 13,840 * lHIS COLUMN SHOWS THE A~CUhl' (jf 'Rilt-tHEliC lHBALANCt: IN THE AHOUt\T Ot;TS.TANUING 'tNClUOUi~ UNUISt3UH~EO FKOM (JNE Yl:AR TO THE NEXT. THE MCS I COtHtCt\ CAl~ fS Lf I t4811L~HCE::i Ail t: CHANGES IN E:XCHAt.GE RA l fS ANO Tkr\t~ Sf ER OF t)£: 0 l S FROH ONE CATEGO~Y 10 ANOTHER I~ ltf lAHLf. J5/L4/70 T AU l t 2 - l A f IU: 11:!>1 P.'1 PAGE ~) SEkVICE PAVME~lS, CC~MIT~~~ISe CI~~UHSEM~Nl~ AND UUT~JANOI~G AMOUNTS OF EX1~RNAl PUULiC DEBT PRtJtCTlGNS BASEU CN Cf61 CUlSTA~OlNG INClUUih~ UNDlSBUR~ED AS Of DEC. 31, 1~77 CE~l R[PAYABLE !N FOR[tGN CUHHENCY AhC GGOU~ ll~ THGUSANOS 0~ U.S. DOLlARS) TYPE Of CRfOIJOR RILATERAL LOANS CREOITCR CCUhl~Y U~ITEO ARAO EMIRATES YEAR DEbT OUTSTANDING AT : 1 k A ~ S AC T I 0 N S D U R I ~ b P E R I 0 0 6fGlNNING Of PERIUO uTHEH Ct-:ANGf:S ---------:-----------------------:----------------------------------------------------------- DISBURSED : JNCLUCihG : COMMIT- O(SBUR!)l:- S t: R \1 a C E ONLY zUNOISHURSEOs PA'tHENTS CANCEL- ~OJU~l­ I'IENTS I'ICI'HS- :-----------:-----------:----------- PRINCIPAL ; INTt:REST s TOTAL LATIONS MENT * (l) (2) ( 3) 44) (51 : &61 '11 '8) ( Cj) l'l70 1~71 1972 1~73 1914 5011140 - - - - 1975 1976 49,826 lt'i,9'.i3 49.826 - - 50,253 - - - 505 505 - -147 -lb1 1977 50 .,Q]CJ 50eCl3CJ - - - 1,833 la833 - 213 1918 ~1,05! 51,051 - - - le012 • t • • • • l~E fGLLCkiNG fiGURES ARE PRCJECTEO •·• • *• ¥ 1978 51,05l 51,051 - - 5,105 ~.020 <;,125 - -5,li)~ \0 1979 ItO, Bio 1 40.641 - - 5a105 3,561 1--J 1960 1981 3!),736 35,136 - - - ~t105 3,101 ti,666 0.206 30,631 JO,c3t - ~ 5,105 2.642 7e747 1982 25.526 25,526 - - 5 I 105 2,182 7,287 - 19fl3 1984 20,Lt2C 20.'e20 - - 5. 105 1,723 6,628 -1 15,315 15gJ15 - - 5.105 le264 6,369 1985 10,210 J(j,2l(l - - 5,105 tiO't 5, 'JCI9 1986 5,105 5,105 - - I 5elu5 345 5,4~0 • THIS COLUHN SHOWS THE A~(U~l Of ARilHHEltC IHBAlANCl IN THt AHOUhT OUTSTANDING INlLUOING UNOISBUK~EO ~RUM ONE YEAR TO THE NEXT. THE HOST COMMCh CAUSES Of 1MBALANLES ARE CHANGES IN tXCHANGE RATES AND TRANSFER 0~ UEBlS fROM ONE'CATEGORY lC ANGTHER I~ l~E TABLE. IAOLE 2 - lAIRE 05/24/7d 1l: 'J 7 PM StRVICf PA~HE~TS, ((.~ll~E~T$, CIS~URSEHENTS ANu OUTSTANCING AMOUNTS UF EXl~RNAL PUULIC OEOT PAt.Jt. ~4 PROJfCTICNS O~Sf£ C~ (f8T CUTSTANOING fNCLUUING u~OlSBLRSCU AS Of DEC. 31, 1977 CEbT Rf.PAYAflf IN FO~EI&N CUR~ENCY AhC GOODS . liN ltiLJUSANOS Of U.S. OOLlARSI TYPE Of CREOITCR ll ILA I Ef8,726 158,126 3 ....... l9CJ5 33.208 4e432 31,640 -6 125,512 125,~H2 1996 18.866 3;154 22,020 ~ 106,650 106etJ50 1997 89,082 17.568 2e60l 20.169 8S,082 ~~.~"~ 2eOll t6,6o5 l * THIS CULUMN SHOWS THE AHOUNl Cf AAI1HHETIC JHQALANCE IN THE AKOU~l UUTSIAUOING INCLUDING UNOISHURSEO FKO~ ONt YEAR TO THE ~EXT. THE ~CSJ CC"H[~ CAUSfS Of I"&ALANCES AkE CHANGES IN fXCtMNGE kAlES AND fKANSftK Cf Of81S fROH ONf CATEGORY 10 ANOlHER IN l~E 1A8lE. u~/.!4/7ti TAblE 2 - lAJfti 125,512 63,6o4 189,376 5,229 1975 1.291.,,631 2e676,946 513.52'o bbel2tl 500,048 92 1 BIH 61,620 15'o,704 7.116 1976 1,655.105 3eCCiBe266 ~22,!.5e -d2,l82 5e~,Oli5 65,520 C.l,6 84 127,204 1977 2al66el5.9 3.305e597 6J,736 .. ,t.09 161.700 448.169 50,502 66,969 1978 2.632.256 3e53te1~S 117,471 102 1Lu,l0~ t • • • f t ThE fOll(WlNG fiGURES ARt PROJECTED • + • • ~ • 1978 1979 2,63~,B56 2 o304 o 829 3,536,798 2e944,01S - - 264. 6'3.2 251, 5