Foreign debt of 33 African countries to be reduced by US$8.5 billion

6 September 2006

Ouagadougou, Burkina Faso, 06 Sept – The foreign debt of 33 African countries is set to be reduced by the African Development Fund (ADF) by a total of US$8.5 billion, news agency PanaPress reported.

According to the agency, which cited a statement from the African Development Bank (ADB), the debt pardon is part of the Multilateral Debt Relief Initiative and, amongst other countries, covers Mozambique, Guinea Bissau and Sao Tome and Principe.

This initiative, proposed by the G8 (group of seven most industrialized nation plus Russia) and approved by the governing council of the ADB, aims to cancel the total debt of the 33 countries to three multilateral financing institutions (the ADF, the International Monetary Fund and the World Bank’s International Development Association), thus allowing them to reduce their overall foreign debt.