Paris Club agrees to cancel $283 million of Guinea-Bissau debt

By Melissa Kory

Cleveland, May 10 - The representatives of the Paris Club creditor countries and representatives of the government of Guinea-Bissau agreed on a debt cancellation of $283 million for Guinea-Bissau in order to restore debt sustainability, according to a Paris Club press release.

The debt reduction follows the republic's completion point under the enhanced Heavily Indebted Poor Countries Initiative reached on Dec. 16.

The republic will cancel $256 million of debt, which represents the Paris Club's share of the effort in the framework of the enhanced initiative. Creditors also committed on a bilateral basis to cancel an additional $27 million.

Guinea-Bissau will use the resources freed by these cancellations for priority areas including health, education and basic infrastructure.

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

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