$548.3M debt rescheduling pact signed with Germany Stabroek News December 14, 2000 Guyana had some $548.3 million of its debt rescheduled by the Federal Republic of Germany yesterday when an agreement came into force after a signing ceremony at the Ministry of Finance. Minister with responsibility for Finance, Saisnarine Kowlessar, signed the agreement on behalf of the Guyana government while Charge d'Affaires of Germany's embassy in Trinidad and Tobago, Hans-Josef Over, represented his government. Kowlessar told reporters that based on the terms of the Paris Club Agreed Minutes signed in Paris on June 25 last year, the agreement yesterday also provided for a reduction of 3.5 million Deutschmarks or $295.6 million on the debt outstanding to Germany. This has brought the total debt reduction to about 20.7 million Deutschmarks or $1.73 billion since the first debt stock reduction operation in May 1996, the minister said. The total debt remaining to Germany after the latest debt reduction is approximately 6.6 million Deutschmarks or $548.3 million. Kowlessar disclosed that principal repayments will take place over 23 years with a six-year grace period. The first principal repayment will commence on November 23, 2005, and the last on May 23, 2022, at an interest rate of 5.75 per cent per annum. The minister said the rescheduling agreement was part of the German government's support for countries benefiting from the Highly Indebted Poor Countries (HIPC) initiative. He stated that the German government had indicated its willingness to support an agreement with the Paris Club that will provide additional debt relief for Guyana once the country has been declared eligible under the enhanced HIPC initiative. This statement was supported by Over who said his country was willing to support Guyana's strategy to reduce its foreign debt which placed a heavy burden on the economy and the country's development. Over said Germany's federal government was also prepared to support the restructuring of Guyana's economy by means such as opening up of markets, fighting poverty and debt reduction. Follow the goings-on in Guyana in Guyana Today