20000105

Debt rescheduling accords

Paris Club extends

timing till Feb 29

ISLAMABAD: Pakistan has got extension up to February 29, to conclude bilateral agreements for loan rescheduling under the Paris Club arrangements, reliable sources said on Tuesday.

"The Finance Ministry has received the letter from the Paris Club, agreeing to extend the deadline by two months," the sources said.

Pakistan, in January last, signed an agreement with the Paris Club for rescheduling of $3.3 billion debt over a period of 20 years.

Under the agreement, however, Pakistan was to sign bilateral agreements individually with the creditor countries of the Paris Club by December 31, 1999.

"The extension was sought because, for the convenience of six of the creditor countries, the agreements could not be completed with them," the sources said while adding," there was no delay on our part."

Out of the total $3.3 billion relief package, Pakistan has now achieved a total rescheduling of $1.87 billion from the members of the Paris Club.

The remaining member countries of the Paris Club, with whom Pakistan is yet to sign agreements are Belgium, the Untied Kingdom, Italy, Switzerland, Finland and Japan.

Pakistan has already signed agreements with 12 countries which included $926 million accord with USA, $255 million with Germany, $11.63 million with Norway, $81 million with Sweden, $22 million with Austria, $23 million with Spain, $4 million with Denmark, $30 million with Netherlands, $42 million (CIDA, $27 million Canadian Wheat Board, $15 million) with Canada and $35 million with South Korea, $398.6 million with France and $40 million accord with Russia.

The debt rescheduling amount agreed with the Paris Club include both the Official Development Associate (ODA) as well as non-ODA loans.

Pakistan will pay back the ODA loans in 20 years, with a 10 years grace period. The non-ODA loans are payable in 18 years with a grace period of three years.ÑAPP