- Paris Club has agreed to immediate cancellation of US $254 million of owed to Liberia after the West African country had reached its Decision Point.
Concluded under "Cologne terms" designed by the Paris Club for the implementation of the Highly Indebted Poor Countries [HIPC], the agreement endorsed the restructuring of Liberia's external public debt. This agreement has been concluded under the so called "Cologne terms" designed by the Paris Club for the implementation of the HIPC initiative interim debt relief.
As of 1st January 2008, Liberia owed the Paris Club creditors more than US $1.5 billion in nominal terms, of which more than 97% consisted of arrears and late interest. The rest of Liberia's resheduled US $789 million will be addressed for debt relieft when Liberia reaches Completion Point.
"On an exceptional basis, considering Liberia's very limited capacity of payment, and provided that this country continues to implement satisfactorily an IMF supported program, no payments are expected from Liberia between 1st March 2008 and 31 December 2010, by which time Liberia is expected to have reached its HIPC Completion Point and received the remainder of the debt reduction envisioned under the HIPC initiative," Paris Club creditors agreed.
"Several creditors intend on a bilateral basis to grant additional debt relief to Liberia beyond the terms set today in the Paris Club agreement."
This development comes after "Liberia is committed to devote the resources that otherwise would have gone to Paris Club creditors to priority areas identified in the country's poverty reduction strategy paper." The country is also "committed to seek comparable treatment from non Paris Club creditors."
Paris Club creditor countries expressed their commitment to implement the final component of debt relief contemplated under the enhanced HIPC initiative, as soon as Liberia reaches the Completion Point. The IMF and the World Bank currently assume that the Paris Club will then have delivered total debt relief of approximately US$ 1.3 billion in net present value terms.
afrol News - It is called "financial inclusion", and it is a key government policy in Rwanda. The goal is that, by 2020, 90 percent of the population is to have and actively use bank accounts. And in only four years, financial inclusion has doubled in Rwanda.
afrol News - The UN's humanitarian agencies now warn about a devastating famine in Sudan and especially in South Sudan, where the situation is said to be "imploding". Relief officials are appealing to donors to urgently fund life-saving activities in the two countries.
afrol News - Fear is spreading all over West Africa after the health ministry in Guinea confirmed the first Ebola outbreak in this part of Africa. According to official numbers, at least 86 are infected and 59 are dead as a result of this very contagious disease.
afrol News - It is already a crime being homosexual in Ethiopia, but parliament is now making sure the anti-gay laws will be applied in practical life. No pardoning of gays will be allowed in future, but activist fear this only is a signal of further repression being prepared.
afrol News / Africa Renewal - Ethiopia's ambitious plan to build a US$ 4.2 billion dam in the Benishangul-Gumuz region, 40 km from its border with Sudan, is expected to provide 6,000 megawatts of electricity, enough for its population plus some excess it can sell to neighbouring countries.
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