Liberia debt to Norway forgiven

handNorway’s government has voted to forgive 90 percent of the debt Liberia owes it, in a move designed to help the country keep up the pace of positive change achieved in recent years. This amounts to USD 35 million, with the remaining 10 percent to be placed under a more manageable repayment plan.

The Norway Post reports that Norway’s Minister of the Environment and International Development, Erik Solheim, stated: “I am glad we have agreed to cancel most of Liberia’s debt to Norway. It is important to support the positive developments that have taken place since the election of President Johnson-Sirleaf four years ago.”

The debt cancellation is part of the Heavily Indebted Poor Countries Initiative, a global programme designed to reduce the national debts of the world’s poorest countries. In reality, these countries will likely never be able to repay their loans at current levels and rarely even manage to scrape together the interest payments.

The Paris Club, a group of the world’s wealthiest nations and creditors, agreed on a framework for the programme in April 2008. “Poor post-conflict countries are in urgent need of help to reduce their debt. Norway gives particular attention to these countries. Countries that are not qualified for help from the Heavily Indebted Poor Countries Initiative are often countries that have recently been affected by war. Liberia is an example for them,” Mr Solheim told the newspaper.

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