Congo relieved of $2.4 billion debt through Paris Club, Brazil efforts

By Devika Patel

Knoxville, Tenn., March 18 - The Republic of Congo's public external debt will be restructured under an agreement with Paris Club creditors and Brazil following Congo having reached its completion point under the enhanced initiative for the Heavily Indebted Poor Countries on Jan. 27.

According to a Paris Club release, the agreement will provide a cancellation of $981 million in debt, which represents the Paris Club and Brazil share of the effort.

Paris Club creditors also said they plan to grant $1.4 billion in additional debt relief. As a result, the total debt relief will amount to $2.4 billion.

Congo committed to channel the resources freed by this debt treatment to priority areas identified in the country's poverty-reduction strategy, including health, education and basic infrastructures.

Congo's public external debt was estimated to be $5.6 billion as of the end of 2008. The debt owed to Paris Club creditors and Brazil was estimated to be $2.5 billion as of Jan. 1.

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