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INTER-AMERICAN AGENCY FOR COOPERATION AND DEVELOPMENT

INTER-AMERICAN AGENCY FOR COOPERATION AND DEVELOPMENT. NATIONAL ENDOWMENT FOR SOCIAL ACTION (NESA). TRADING DEBT FOR DEVELOPMENT PANEL 1: Contributing Debt for Social Action. DEBT CONTRIBUTION PROBLEMS. EXISTING NEGOTIATING MECHANISMS PRINCIPAL WRITEOFF METHOD INTEREST RATE METHODOLOGY

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INTER-AMERICAN AGENCY FOR COOPERATION AND DEVELOPMENT

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  1. INTER-AMERICAN AGENCY FORCOOPERATION AND DEVELOPMENT NATIONAL ENDOWMENT FOR SOCIAL ACTION (NESA) TRADING DEBT FOR DEVELOPMENTPANEL 1: Contributing Debt for Social Action

  2. DEBT CONTRIBUTION PROBLEMS EXISTING NEGOTIATING MECHANISMS PRINCIPAL WRITEOFF METHOD INTEREST RATE METHODOLOGY LOCAL CURRENCY CONVERSION

  3. SUGGESTED CRITERIA • EXISTING LOAN DOCUMENTATION REMAINS UNCHANGED • PRINCIPAL FOREGIVENESS DIRECTLY LINKED TO EXISTING NEGOTIATING MECHANISMS • UNIFORM METHODOLOGY TO ESTABLISH INTEREST RATES AND CURRENCY CONVERSION

  4. CRITERIA APPLICATION #1 • ORIGINAL CREDITOR REMAINS RESPONSIBLE FOR COLLECTION • LOAN IS DIVIDED INTO TWO PARTS: SOVEREIGN (NOTE #1) NESA OBLIGATION (NOTE #2) • ORIGINAL CREDITOR AND OBLIGOR SIGN SEPARATE AGREEMENTS WITH NESA • COUNTRY REMAINS RESPONSIBLE FOR WHOLE LOAN ORIGINAL CREDITOR BILLS FOR BOTH NOTES OBLIGOR PAYS ORIGINAL CREDITOR FOR BOTH NOTES

  5. CRITERIA APPLICATION #2 • ORIGINAL OBLIGOR DEDUCTS FULL AMOUNT DUE ON NOTE #1, REDMITING BALANCE TO NESA (SHOULD EQUAL NOTE #2 DUE • NESA BILLS OBLIGOR FOR ANY BALANCE DUE ON NOTE #2. ORGINAL OBLIGOR RECIEVES CREDIT FOR FULL AMOUNT OF NOTE #2 WITH PARIS/LONDON CLUB • NESA RESPONSIBLE FOR BILLING ARREARAGES ON NOTE #2 AFTER INITIAL BILLING • ARREARAGES CONSEQUENCES SPECIFIED

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