AfDB scraps 13 countries' debt

2006-04-20 20:53

Tunis - The African Development Bank on Thursday said it was writing off the debt of 13 African countries which together amounts to $8.54bn.

Benin, Burkina Faso, Ethiopia, Chana, Madagascar, Mali, Mozambique, Niger, Rwanda, Senegal, Tanzania, Uganda and Zambia will all have their debts cancelled, the bank said.

"This is a significant step forward in the initiatives by donor countries, both Group of Eight and others, on the issue of debt, which is to be applauded highly," the bank's president, Donald Kaberuka, said.

The bank said the debt relief was intended to allow the 13 countries to channel resources into poverty relief, but also to stimulate economic growth and encourage governments to stay on track with reforms.

It urged the countries to fight corruption.

The G8 powers in July announced their plan to cancel the debts of 18 of the poorest countries owed to the World Bank, the IMF and the African Development Bank.

SAPA