Seychelles agrees to swap $283 mln in debt

Fri Jan 15, 2010 1:03pm GMT

[-] Text [+]

ANTANANARIVO (Reuters) - Seychelles on Friday said it had 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 due 2011 -- along with two older loans dating from 1999 and 2003.

"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", Finance Minister Danny Faure said in a statement.

The arrangement, together with last year's deal with the Paris Club of creditors to cancel debt worth close to $70 million, would put the Indian Ocean archipelago's debt on a sustainable footing, Faure added.

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. The International Monetary Fund stepped 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 Feb 11 2010.

<p>A bank employee counts one hundred dollar notes at a bank in Seoul February 26, 2009. REUTERS/Lee Jae-Won</p>

AFRICA BLOGS

Libya's former leader Muammar Gaddafi (L) welcomes Egypt's former President Hosni Mubarak as he arrives to attend a meeting involving five Arab states in Tripoli June 28, 2010. REUTERS/Stringer

Will 2012 see more strong men of Africa leave office?

There are many reasons for being angry with Africa ’s strong men, whose autocratic ways have thrust some African countries back into the eye of the storm and threatened to undo the democratic gains in other parts of the continent of the past decades. Blog

Kenyan troops patrol the Garrisa airstrip October 18, 2011. Al Qaeda-linked militants prepared to defend a south Somali town on Tuesday from advancing Kenyan and government troops, while a suicide car bomb killed six people in Mogadishu during a visit by a Kenyan minister. REUTERS/Gregory Olando

Operation Somalia: The U.S., Ethiopia and now Kenya

Ethiopia did it five years ago, the Americans a while back. Now Kenya has rolled tanks and troops across its arid frontier into lawless Somalia, in another campaign to stamp out a rag-tag militia of Islamist rebels that has stoked terror throughout the region with threats of strikes. Blog

New recruits belonging to Somalia's al-Qaeda-linked al Shabaab rebel group march during a passing out parade at a military training base in Afgoye, west of the capital Mogadishu February 17, 2011. REUTERS/Feisal Omar

Could Islamist rebels undermine change in Africa?

Creeping from the periphery in Africa’s east and west, Islamist militant groups now pose serious security challenges to key countries and potentially even a threat to the continent’s new success. Blog

A disabled Somali refugee child crawls from their makeshift house at the Ifo camp near Daadab, about 80km (50 miles) from Liboi on the border with Somalia in north-eastern Kenya, February 4, 2009. The growing flow of Somalis fleeing conflict at home has led to overcrowding in refugee camps in neighbouring Kenya and the United Nations expects the influx to continue, an official said. REUTERS/Noor Khamis

The children of Dadaab: Life through the lens

Through my video “The children of Dadaab: Life through the Lens” I wanted to tell the story of the Somali children living in Kenya’s Dadaab. Living in the world’s largest refugee camp, they are the ones bearing the brunt of Africa’s worst famine in sixty years. Blog

Zimbabwe's President Robert Mugabe (R) and his Equatorial Guinea counterpart Teodoro Obiang Nguema Mbasogo arrive for the opening of the Harare Agricultural Show, August 31, 2007. President Robert Mugabe on Friday imposed a new law on Zimbabwean businesses banning them from raising wages to keep pace with the world's highest inflation. REUTERS/Philimon Bulawayo

Who among the seven longest serving African leaders will be deposed next?

Several African leaders watching news of the death of Africa ’s longest serving leader are wondering who among them is next and how they will leave office. Blog

Tibet's exiled spiritual leader the Dalai Lama jokes with photographers during a news conference in Sao Paulo September 16, 2011. REUTERS/Nacho Doce

Was South Africa right to deny Dalai Lama a visa?

Given that China is South Africa’s biggest trading partner and given the close relationship between Beijing and the ruling African National Congress, it didn’t come as a huge surprise that South Africa was in no hurry to issue a visa to the Dalai Lama. Blog

Latest AlertNet Crises News

Powered by Reuters AlertNet. AlertNet provides news, images and insight from the world's disasters and conflicts and is brought to you by Reuters Foundation.