Sao Tome to propose US$60 million debt relief to Paris Club

25 April 2007

Sao Tome, Sao Tome and Principe, 25 April – The Sao Tome government is to ask the Paris Club of creditor nations to cancel the islands’ foreign debts of US$60 million, media in the archipelago have reported.

State Radio Nacional said a government delegation, led by Finance Minister Maria Tebus Torres, will travel to Paris next month for talks on the proposed pardoning of Sao Tome’s debts.

As part of its commitment to the Paris Club, France announced last November that it was rescheduling Sao Tome’s bilateral debt of 3.5 million euros to encourage investment in social projects in the islands.

The World Bank and IMF decided in Mach to pardon 91 percent of Sao Tome’s foreign debt, equivalent to US$327 million, under the Heavily Indebted Poor Countries initiative. (macauhub)