Dominican Republic reschedules $137 million of Paris Club debt

By Reshmi Basu

New York, Oct. 21 - The Paris Club and the government of the Dominican Republic have reached an agreement to reschedule $137 million of debt payments maturing this year.

The rescheduling, which extends the maturity to 12 years, is expected to reduce the debt owed to Paris Club members to $222 million from $357 million, according to a Paris Club statement.

Creditors said they welcomed the completion of two reviews under the International Monetary Fund's stand-by arrangement, which was approved on Jan. 31, and also the success of the private debt restructuring completed by the Dominican Republic.

The rescheduling also includes a five-year grace period.

The stock of debt owed to Paris Club creditors was estimated to be $2.047 billion as of Sept.1, according the group's statement.

The Paris Club, founded in 1956, is an informal group of creditor nations.

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