- The Democratic Republic of Congo could see half of its debt to the Paris Club of creditors written off, according to an agreement announced today by the members.
The agreement follows on the International Monetary Fund's (IMF) approval in December of a loan arrangement for the DRC, making the country eligible for an IMF debt relief programme.
According to the announcement, of $3 billion covered in the new agreement, $1.3 billion will be cancelled and almost $1.7 billion rescheduled, while debt service payments have been deferred until after 1 July, 2012.
The Club said repayments had also been deferred taking into consideration of the DRC’s financial capacity to repay. More relief has also been promised on the DRC if the country meets some of its obligations under the Highly Indebted Poor Countries (HIPC) initiative.
"The Democratic Republic of Congo 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 statement by the Paris Club said.
The DRC is said to have a debt of $6.9 billion with the Paris Club as at the end of June last year.
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