Japan cancels Ethiopia’s debt

(21/07/06)

The Japanese government has cancelled 100% of Ethiopia’s outstanding debts, which amount to US $14.4 million, as part of the Enhanced Heavily Indebted Poor Countries (HIPC) and the Fourth Paris Club Agreement. Ethiopia will now be able to use the money saved through the debt relief to finance various projects as part of its poverty reduction programme.

The debt cancellation agreement was signed today in Addis Ababa by the Minister of Finance and Economic Development, Sufian Ahmed and the Japanese Ambassador to Ethiopia, Kenjiro Izumi.

At the signing, Ambassador Izumi said Japan’s share of the debts to the 27 countries for which the HIPC initiative applies is approximately US $5.4 billion.

ENDS