Antigua and Barbuda, Paris Club creditors agree to restructure debt

By Angela McDaniels

Tacoma, Wash., Sept. 15 - Antigua and Barbuda's public external debt will be restructured under an agreement reached Wednesday with Paris Club creditor countries, according to a Paris Club news release.

This agreement follows the International Monetary Fund's approval of Antigua and Barbuda's standby arrangement on June 7.

The restructuring agreement reduces the debt service due to the Paris Club creditors by more than 86% during the IMF-supported program under the standby arrangement.

Roughly $117 million of debt was rescheduled, consisting of $98.1 million due as of Aug. 31 and $18.9 million of maturities falling due from Sept. 1 up to April 30, 2013, which will be repaid over 12 years including five years of grace.

ODA loans will be rescheduled at a concessional rate.

Paris Club said that due to the uncertainties on the macroeconomic environment, the creditor countries agreed to consider Antigua and Barbuda's external financing situation if required.

Antigua and Barbuda agreed to seek comparable treatment from its other creditors.

Antigua and Barbuda's public external debt was estimated to be $500 million at the end of 2009, and the debt owed to Paris Club creditors was estimated to be $133 million as of May 1, according to the release.

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