Newsroom: Article

Emerging Market De(bt)velopments

Libya, workout possibility for defaulted commercial debts.
Omni Bridgeway has identified an opportunity to arrange for a workout of defaulted commercial debts involving Libya. The economic and political situation in Libya has improved considerably in recent years, which has paved the way for resolving defaulted trade debts. Based on current discussions with the parties involved, we estimate that the workout possibility will materialise early next year.
Libya’s macroeconomic performance has improved significantly in 2007. This has caused the gross official reserves to grow to about $83bn by the end of this year. Libya’s economy is expected to benefit further during 2008 and beyond from continued high oil prices, further growth in oil output and increased interest from foreign investors.
A first tentative deadline to participate in this workout possibility is expected by the end of this year, possibly the beginning of 2008.

We invite holders of Libyan defaulted commercial debts to contact us for advice on any questions relating to a possible workout of these claims.

 
Jordan, early repayment of Paris Club debt.
The Paris Club and the Hashemite Kingdom of Jordan have reached a principle agreement on an offer by Jordan to make an early repayment on its outstanding Paris Club debt. Jordan has consistently followed a pro-Western foreign policy and has traditionally had close relations with the United States and the United Kingdom.
The free trade agreements with the United States and the European Union have helped drive economic growth. While pursuing economic reform and increased trade, the government’s emphasis on macroeconomic stability has had a big influence on the current strong economic and financial performance of Jordan.
The face value of Jordan’s debt with Paris Club creditors amounts to approximately $2.5bn. The early repayment offer excludes debt already granted under Official Development Assistance (ODA). The ODA debts were already rescheduled between 1994 and 2002.
They include the uninsured portions of private creditors who were insured with their national Export Credit Agencies and have seen their uninsured portions restructured within the Paris Club framework in the past. Each Paris Club creditor country may still decide individually whether to accept the offer of Jordan, which entails a buy-back/early repayment at market value of the eligible debt.
A number of countries have already expressed their intention to participate in this repayment, which is scheduled to take place between January and March 2008. The transaction involves the following Paris Club creditor countries of Jordan: Austria, Belgium, Canada, France, Germany, Italy, Japan, Spain, Switzerland, the UK and the US.

For distressed debt recovery, workout or trading & investment requests or more information on specific debts, debt conversions and restructurings, please contact:

 A. Thiescheffer on thiescheffer@omnibridgeway.com
 R. van Hulst on vanhulst@omnibridgeway.com
 H. Rijkens on rijkens@omnibridgeway.com

Attached please find a sample of emerging market debt pricing. Please note that the included prices are sample prices. A copy of the latest prices can be obtained by sending your contact details to info@omnibridgeway.com.
If you are interested in receiving the prices on a bimonthly basis, please indicate and send your contact details to info@omnibridgeway.com.