The African Development Bank announced it is going to forgive $8.5 billion worth of debts owed to it by 33 African countries. “The Board of Directors of the African Development Fund (ADF) and the African Development Bank (ADB) on Wednesday, 19 April 2006, have approved US$ 8.5 billion for financing debt relief of 33 low-income countries in Africa under the Fund’s Multilateral Debt Relief Initiative (MDRI),” the bank said in a statement. The move is in accordance with the deal reached at the G8 summit in Gleneagles, Scotland last year. The recipients include potential eligible beneficiaries and the 14 countries that reached the completion point under the Heavily Indebted Poor Countries initiative. However, only 13 of them – Benin, Burkina Faso, Ethiopia, Ghana, Madagascar, Mali, Mozambique, Niger, Rwanda, Senegal, Tanzania, Uganda, and Zambia – will immediately get debt relief. Mauritania must first meet the criteria on public expenditure management reforms before it enjoys the same benefit.
Source: African Dev. Bank approves $8.5 bln debt relief (Reuters)