Ethiopia, U.S.A. sign over 29.2 USD debt relief agreement

Addis Ababa, January 28(ENA)-- The governments of Ethiopia and the U.S. signed on Tuesday a debt cancellation agreement amounting to over 29.2 million US Dollars.

According to the agreement, the U.S. government has forgiven Ethiopia's 100 per cent debt which should be paid up to March 2004 including arrears and debt services.

The debt relief signed by State Minister of Finance and Economic Development, Dr. Mulu Ketsela and U.S. Ambassador to Ethiopia, Aurelia Brazeal includes principal and interest payments.

Dr. Mulu said on the occasion that though the Ethiopian government was entitled to get a 90 per cent debt reduction from Paris Club creditors as per the enhanced Heavily Indebted Poor Countries (HIPIC) initiative, the USA has gone beyond and made a 100 per cent debt relief.

She appreciated the U.S. government's initiatives and promised to use the saving from the debt cancellation to finance the poverty reduction program of the country.

Ambassador Brazeal said on her part that the agreement was part of the U.S. government's desire to further consolidate the one-hundred-year-old positive relations between the two countries.

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