Rwanda says debt relief for Africa too conditional

    Rwandan President Paul Kagame warned that without alternatives for long-term and predictable funding resources, Rwanda and the 13 sub-Saharan African nations that stood to benefit from the 2005 Highly Indebted Poor Countries (HIPC) initiative “are likely to be locked in a low growth-low debt scenario.” He argued that “while debt cancellation has brought significant relief, it is evident that it has created some challenges as well, due to conditionalities attached to it,” adding that “it certainly does not provide solutions to the challenges of development financing in HIPC countries.” To secure financing for public investments, countries under the HIPC initiative are now hard-pressed to look for grants and highly-concessional funding instead of loans. (Source: Rwanda’s Kagame decries conditions on aid/Reuters)

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