Tunis, 22 April 2009 –The Board of Directors of the African Development Bank (AfDB) Group has approved Burundi’s qualification for a debt relief of US$ 150.2 million as at end 2004 Net Present Value (About US$ 241.70 million), after it reached completion point under the Enhanced Highly Indebted Poor Countries (HIPC) Initiative.
Burundi also qualifies for US$ 15.38 million from the AfDB’s Multilateral Debt Relief Initiative (MDRI) in line with the package approved by the Board on Wednesday, 22 April 2009, in Tunis.
Burundi’s total debt relief of US$ 832.6 million as at end-2004 Net Present Value (NPV) terms comprises:
- US$ 705.8 million from multilateral creditors, (84.8 percent);
- US$ 121 million from bilateral creditors (14.5 percent);
- US$ 5.8 million from commercial creditors (0.7 percent);
- US$ 150.2 from AfDB’s share (21.3 %t MDRI and 18.0 % total debt relief)
The approved irrevocable debt relief of US$ 150.2 million as at end-2004 NPV terms, or US$ 241.70 million in nominal terms covers the period from 2005 to 2035. Part of the debt relief, US$ 26.3 million in 2004 NPV terms, was delivered during Burundi’s arrears clearance operation with the Bank Group prior to the HIPC Decision Point. The remaining debt relief, US$ 123.9 million, would be provided during the 2005 to 2035 period. About 20 percent of the remaining debt relief, US$ 24.8 million would be financed from internal resources, and the remaining 80 percent through the HIPC Trust Fund. Part of the HIPC Trust Fund’s portion of the debt relief, amounting to US$ 20.7 million in NPV terms, has already been provided as an interim debt relief to Burundi during 2005-2008.
With the AfDB Boards’ approval of the completion point, the country qualifies for additional debt relief from the World Bank (IDA), the IMF and the AfDB under the MDRI. IDA would provide US$ 98.3 million, the IMF, SDR 9.2 million, and the AfDB, US$15.38 million, (UA 10.48 million), all in nominal terms.
On January 29, 2009, Burundi became the 20th regional member country (RMC) to reach completion point under the enhanced HIPC Initiative. As a result, the Boards of Directors of the IMF and the World Bank approved a HIPC debt relief of US$ 832.6 million in end-2004 NPV terms for the country, which includes US$ 150.2 million debt relief from the Bank Group.