Paris Club to cancel Niger's debt

By Reshmi Basu

New York, May 13 - The Paris Club of creditor countries said it will cancel all of the debt owed to its members by Niger as part of its initiative to provide relief to poor indebted nations.

The Paris Club members are asking their governments to cancel $104 million in debt. Furthermore, an additional $48 million will be reduced as part of bilateral debt relief.

"After additional bilateral cancellation, the entire debt of Niger towards Paris Club Creditors will be cancelled," the members said in a statement.

The Paris Club members said its recommendation to forgive the West African nation's $152 million debt reflected Niger's commitment to economic and structural reforms.

The relief was granted under the terms of the Debt Initiative for Heavily Indebted Poor Countries, as laid out by the International Monetary Fund and International Development Association.

The freed resources will be devoted to the country's poverty reductions strategy and to seek comparable treatment from creditor countries as well as commercial creditors.

Formed in 1956, the Paris Club is an informal group of creditor governments from major industrialized countries.

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