The Inter-American Development Bank has erased $4.4 billion in debts owed to it by Bolivia, Honduras, Nicaragua, Haiti and Guyana. “This is a historic opportunity that will give these countries a fresh start,” IDB president Luis Alberto Moreno said. The deal, which Moreno affirmed had the backing of all members, involves cancellation of $3.4 billion in principal payments and $1 billion in interest. The IDB board also approved low-interest loans of up to $250 million per year for Ecuador, El Salvador, Guatemala, Paraguay and Suriname.
Sources:
Inter-American Development Bank forgives debt of five Latin American, Caribbean nations (AP)
IADB forgives 4.39 bln dollars debt for five nations (Xinhua)