Ordinance No 83-027 of December 21, 1983 Authorizing the Central Bank of Madagascar to Execute a Substitution-Subrogation Operation for External Debt Refinancing

ORDINANCE NO. 83-027 of December 21, 1983 authorizing the Central Bank of Madagascar to carry out for the refinancing of external debt, a substitution-subrogation operation (Official Gazette No. 1609 of December 31, 1983, p. 3265) ratified by Law No. 84-009 of June 12, 1984 (Official Gazette No. 1633 of June 16, 1984) Article 1 - To implement the refinancing agreement to be concluded between the Central Bank and a number of foreign institutions and commercial banks aimed at restructuring the claims of said institutions and banks, the Central Bank is substituted for the original debtors with respect to these creditors for the settlement of all debts included in said restructuring, as they stand on the date of this ordinance, arising from initial agreements or obligations. The notification of this substitution decision to each original debtor or guarantor triggers the automatic subrogation of the Central Bank in all rights of the foreign creditors as derived from the initial agreements or obligations. Art. 2 - However, notwithstanding the signing of the refinancing agreement, the original debtors and guarantors remain liable for their debts with respect to foreign creditors, under the initial agreements or obligations, until the effective date of refinancing set forth in the aforementioned agreement and as determined following the fulfillment of contractual suspensive conditions.