The Debts of Overseas Governments (Determination of Relevant Percentage) (Amendment) Regulations 1993

• Citation: S.I. 1993/1623
• Sections: 8

Section 1 Citation, commencement and effect

These Regulations may be cited as the Debts of Overseas Governments (Determination of Relevant Percentage) (Amendment) Regulations 1993, shall come into force on 30th June 1993, and shall have effect with respect to any period of account of a company ending on or after that date.

Section 2 Interpretation

In these Regulations—

“the principal Regulations ” means the Debts of Overseas Governments (Determination of Relevant Percentage) Regulations 1990 ;

“Schedule 1” means Schedule 1 to the principal Regulations.

Section 3 Amendments to the principal Regulations

In regulation 3 of the principal Regulations—

(a) in paragraph (1) for the words “subsections (2) and (3)” there shall be substituted the words “subsection (2)”;

(b) for paragraphs (2) to (5) there shall be substituted—

(2) The percentage referred to in paragraph (1) shall be that given by Schedule 2 to these Regulations as corresponding to the number which is found by aggregating the numerical values attributed by Schedule 1 to these Regulations to such of the A, B and C factors as are applicable at the end of the period of account in question in the case of the State or territory with which the debt is connected.

Section 4 Amendments to the principal Regulations

In paragraph 1 of Schedule 1 the words “or period of three months” in paragraph (a) of sub-paragraph (2) shall be omitted.

Section 5 Amendments to the principal Regulations

For Table A in paragraph 2 of Schedule 1 there shall be substituted—

(1)

(a) The State or territory has entered into an agreement to reschedule or restructure its obligations as to repayment of debts, or payment of interest on debts, to a general class of external creditors and at the relevant date the agreement was entered into—

(b) the State or territory within the period of five years preceding the relevant date has refused to co-operate in a rescheduling or restructuring of its obligations as to repayment of debts, or payment of interest on debts, to a general class of external creditors;

(c) the State or territory within the period of five years preceding the relevant date—

(i) has imposed a limit on the performance of its obligations as to repayment of debts, or payment of interest on debts, to a general class of external creditors, without the agreement of those creditors, or

(ii) has had severe problems in performing those obligations, or

(iii) has both imposed such a limit and had such problems;

(2)

(a) The State or territory either—

(i) has entered into an agreement to reschedule or restructure its obligations as to repayment of debts, or payment of interest on debts, to a general class of external creditors, under which the creditors have lent further amounts to enable the State or territory to make repayments of debt which are in arrear and pay arrears of interest, or arrears of interest have been added to the amount of outstanding debt or have been paid and immediately lent back to the State or territory, or arrears in repayment of debts which have already been the subject of a rescheduling or restructuring agreement or of unrescheduled debts are rescheduled or restructured, or

(ii) has entered into a further agreement to reschedule or restructure obligations as to repayment of debt to a general class of external creditors which have already been rescheduled or restructured since January 1983,

(b) the State or territory within the period of five years preceding the relevant date has refused to co-operate in a rescheduling or restructuring of its obligations as to repayment of debts, or payment of interest on debts, to a general class of external creditors, so that it might have been expected to have entered into an agreement on more than one occasion to reschedule or restructure those obligations and, if it had done so, would be likely still to have arrears of payment at the relevant date;

(c) the State or territory within the period of five years preceding the relevant date—

(i) has imposed a limit on the performance of its obligations as to repayment of debts, or payment of interest on debts, to a general class of external creditors, without the agreement of those creditors, or

(ii) has had severe problems in performing those obligations, or

(iii) has both imposed such a limit and had such problems,

Section 6 Amendments to the principal Regulations

For Table B in paragraph 3 of Schedule 1 there shall be substituted—

(3) The State or territory is in arrear in repaying debt, or in paying interest on debt, to one or more international financial institutions so that, in the case of the International Monetary Fund, it has been declared ineligible to draw on the general resources of that Fund as held in the General Resources Account or any account which may be substituted for it by amendment of the Articles of Agreement of that Fund or, in the case of the World Bank, the International Bank for Reconstruction and Development, the International Development Agency, the International Finance Corporation or a regional development bank, disbursement of loans to it has stopped.

(4) The State or territory is in arrear in repaying debt, or in paying interest on debt, to external creditors other than international financial institutions, the arrears have neither been the subject of a rescheduling or restructuring agreement nor been repaid or, as the case may be, paid, and immediately lent back to that State or territory, and at the relevant date they have existed—

Section 7 Amendments to the principal Regulations

For Table C in paragraph 4 of Schedule 1 there shall be substituted—

(5) The ratio between debt and gross domestic product applicable in the case of the State or territory on the basis of the figures for the latest available period, that is to say the total external debt of the State or territory at the end of that period divided by the annual total of goods produced and services provided in that period, the result being expressed as a percentage and rounded to the nearest one tenth of one percentage point, is—

(6) The ratio between debt and exports applicable in the case of the State or territory on the basis of the figures for the latest available period, that is to say the total external debt of the State or territory at the end of that period divided by the value of exports of goods and services (including interest and net transfer receipts) in that period, the result being expressed as a percentage and rounded to the nearest one tenth of one percentage point, is—

(7) The debt service ratio applicable in the case of the State or territory on the basis of the figures for the latest available period, that is to say the result of dividing the sum of the total amount of the external debt of the State or territory repayable for that period, other than debt which falls to be repaid within twelve months of the date on which it was incurred, and the total amount of interest payable for that period by the value of exports of goods and services (including interest and net transfer receipts) in that period, expressing that result as a percentage and rounding that percentage to the nearest one tenth of one per cent., is—

(8) The interest service ratio applicable in the case of the State or territory on the basis of the figures for the latest available period, that is to say the result of dividing the total amount of interest payable for that period by the value of exports of goods and services (including interest and net transfer receipts) for the same period, expressing that result as a percentage and rounding that percentage to the nearest one tenth of one per cent., is—

(9) The number of months for which the State or territory has visible import cover at the relevant date, that is to say the result rounded to the nearest one tenth of one month of the formula—

where—

A is the amount or value of the assets held by the monetary authorities of the State or territory, which may freely be used to support the exchange value of the currency of that State or territory, on the basis of the figures at the latest available date including assets which may readily be used to obtain such assets and gold valued at 75 per cent. of its price expressed in United States dollars per fine troy ounce as declared at the morning fixing in the London Bullion Market on that date; and

B is the annual value of imports of goods into the State or territory on the basis of the figure for the latest available period; is—

(10) The State or territory at the relevant date—

(a) is in breach of performance criteria which were set for it (and which have not been subsequently waived) in an agreement which it has entered into with the International Monetary Fund; or

(b) has problems in relation to its external debt of such a nature as would justify an approach to the International Monetary Fund for assistance, but—

(i) it is unwilling to make such an approach, or

(ii) it is unable to make such an approach either because it is not a member of that Fund or because that Fund has refused to have any dealings with that State or territory, or

(iii) an approach for assistance having been made, that Fund has refused to discuss the question of assistance with that State or territory.

(11) The price expressed as a percentage of its face value which the external debt of the State or territory might reasonably have been expected to fetch on a sale in the open market at the relevant date, that percentage being rounded to the nearest one tenth of one per cent., is—

Section 8 Amendments to the principal Regulations

For the Table in Schedule 2 to the principal Regulations there shall be substituted the following Table—