U.S. Cancel Afghanistan Debt
Economy December 24th, 2009
WASHINGTON – United States welcomed the decision of the Paris Club creditors to cancel Afghanistan debt to its members as an “important step” toward economic sustainability on Wednesday (17/3/2010) local time.
As quoted by AFP on Thursday (18/3/2010), Ministry of Foreign Affairs said in a statement, step 19-member club is a “major achievement” for Afghanistan and show how the world recognizes that
Afghanistan has taken “significant steps” to strengthen its economy.
“Appointment of the debt burden inherited by the government of Afghanistan marks an important step on the path of economic sustainability of Afghanistan,” he added.
“The agreement reached today would apply the treatment completion point under Afghanistan` the Enhanced Heavily-Indebted Poor Countries Initiative `,” the statement said.
“The agreement also recognizes Afghanistan’s performance under the program International Monetary Fund (IMF) and progress in adopting and implementing economic reforms in a very challenging environment,” the statement said.
Informal group of industrialized countries said in a statement it was clear USD585 million and voluntary bilateral debt after the Afghan government promised to allocate the freed resources to fight poverty.
Paris Club said, also decided to cancel an additional USD441 million representing the share of the club in the initiative the IMF and World Bank that provides low-interest loans to the poorest countries of the world.
A number of USD1, 026 billion in debt forgiven by Paris Club, representing about half of the external public debt in Afghanistan in March 2009, or $ 2, 104 billion
