France re-schedules Sao Tome and Principe’s bilateral debt

21 November 2006

Sao Tome, Sao Tome and Principe, 21 Nov – France has decided to re-schedule Sao Tome and Principe’s debt estimated at 3.05 million euros, as part of the implementation of the Paris club agreement, officials said in Sao Tome Monday.

The change in maturity of the loan granted by France, allowing a further 16 years for it to be paid, follows a bilateral convention signed over the weekend by the Sao Tome Foreign Minister, Carlos Gustavo dos Anjos, and French ambassador, Jean Marc Simon.

According to a government statement, the re-scheduling was due to the conclusion of an International Monetary Fund (IMF) macroeconomic balancing policy, which aims to obtain a pardon for the archipelago’s foreign debt, valued at over US$300 million.

This decision by the French authorities aims to encourage investment in projects to combat poverty, designed and carried out by the Sao Tome authorities in partnership with France’s development agency based on the bilateral convention of the Paris club set up on September 13, 2005.

France, which is considered to be one of Sao Tome and Principe’s main partners, has invested in the education sector, by granting scholarships, creating a professional training center, the agricultural sector, the media, and the project for combating poverty. (macauhub)