Seychelles To Swap
283 Million Dollar Debt
Seychelles
says it has agreed with creditors to swap old debt worth $283
million, representing 89 percent of the debt it
sought to restructure in an exchange offer.
The eligible instruments were 54.75 million Euros in
amortising notes and $230 million in 9.125 percent
notes. Both are due in Year 2011, along with two older loans
dating from 1999 and 2003.
Finance Minister, Danny Faure said in a statement on Friday
that, ’’With the results of the exchange offer, 50 percent of
the full amount of external commercial debt eligible under the
exchange offer will be cancelled.’’
The arrangement, together with last year's deal with the Paris
Club of creditors to cancel debt worth close to $70
million, is to put the Indian Ocean archipelago's debt on a
sustainable footing.
Seychelles defaulted on a six-monthly interest payment on the
2011 Eurobond in October, 2008.
The bond default reflected an acute balance of payments crisis
which prompted the International Monetary Fund to step in with
an emergency $26 million package in November 2008.
Creditors had the option to select either new notes at discount
or par. The exchange offer is scheduled to settle on February 11
2010.
REUTERS/Yinka
