THE PARIS CLUB GLOSSARY (continued)

Restructuring
Synonym for rescheduling.

Special Account
Establishment of an account by the debtor with the Central Bank of one of the creditor countries. Under the terms of an Agreed Minute, the debtor commits itself to deposit monthly payments. The total amounts deposited during the consolidation period correspond to total debt service obligations due under bilateral agreements concluded in implementing a Paris-Club Agreed Minute. while the amounts paid into the Special Account remain part of the debtor's foreign exchange reserves, he is committed not to use them for any purpose other than for making payments to creditors until all the obligations falling due during the consolidation period have been made; creditors insist on the establishment of a Special Account in cases where a debtor's track record in terms of meeting payment obligations and implementing arrangements with the IMF has been less than satisfactory.

Standard Terms
Rescheduling terms applicable to middle-income countries; standard terms are non-consolidated, i.e. they do not reduce the net-present value of the amounts rescheduled; the repayment period does not exceed 10 years with the grace period ranging from four to six years.

Stock of Debt
Total debt disbursed and outstanding; under Paris-Club terms, only debt servicing obligations falling due within a given consolidation period are rescheduled; the Agreed Minutes concluded with Poland and Egypt in 1991 exceptionally provided for the reduction and rescheduling of these countries' outstanding stock of debt; Trinidad-Terms available to low-income countries tie a stock-of-debt treatment to a three-year waiting period during which the debtor needs to establish a positive track record with respect to implementing rescheduling agreements and arrangements concluded with the IMF

Toronto Terms
Toronto-Terms were introduced in the fall of 1988 following a recommendation adopted by the Toronto-summit; creditors agreed to reduce the net-present-value of the debts rescheduled by 33 percent; creditors had the choice between the options debt and debt service reduction; due to internal legal and budgetary constraints, the United States were unable to join the consensus and hence permitted to reschedule the debt of Toronto-debtors over a long period (25 years with a grace period of 14 years); this called long-term option does not contain an element of concessionality Only countries classified by the World Bank as IDA-only countries qualified as Toronto-countries Toronto-Terms have been superseded in December of 1991 by the Enhanced Toronto-Terms or Trinidad-Terms (see "Trinidad-Terms")

Trinidad Terms
Trinidad-Terms or Enhanced Toronto-Terms superseded the Toronto-Terms by increasing the level of concessionality from 33 percent to 50 percent. The repayment period for the remaining debts were lengthened from 15 (Toronto-Terms) to 23 years with the grace period depending upon the option chosen: six years of grace under the debt reduction, no grace period under the debt service reduction option; at the request of the United States, the so-called long-term option (see "Toronto-Terms") was retained with the grace period lengthened from 14 to 16 years Considering the grant element inherent in ODA-loans, ODA-debt-servicing obligations are rescheduled over 30 years with 20 years of grace. In addition, creditors agree to consider the matter of the debtor's stock of debt if, after three years following the signing of the Agreed Minute, the debtor has met all payments and successfully implemented the economic programmes supported by the IMF. Like Toronto-Terms, Trinidad-Terms applicable to low-income countries only.

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