Newsroom: Article

Emerging Market De(bt)velopments

On 12 June 2008 the Togolese government and Paris Club creditors reached a debt relief agreement. The total debt treated in this agreement is $739m. This agreement is concluded under the so called ‘Naples terms’ and will lead to the cancellation of about $347m. In accordance with the Naples terms, the Official Development Assistance debts are to be repaid over 40 years, with 16 years of grace. The commercial debts have been cancelled for 67% with the remaining amounts being rescheduled over 23 years, with six years of grace.

At the end of 2007 Togo had a GDP of about $2.5bn and an external public debt of about $2bn. The economy has grown well in recent years and inflation has been relatively low. However, the sharp rise of commodities and food prices has made it more difficult for Togo to comply with its external payment obligations. For this reason, creditors have also agreed to defer repayments by Togo of arrears accumulated by Togo on short term and post cut-off date (1 January 1983) debts.

Togo is also committed to seek comparable treatment from non-Paris Club creditors.

We invite holders of Togo defaulted trade debts to contact us for advice on any questions relating to a possible recovery of these claims

A. Thiescheffer on thiescheffer@omnibridgeway.com
H. Rijkens on rijkens@omnibridgeway.com

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