UK wipes debt slate clean
Stabroek News
June 8, 2004
The United Kingdom has joined the list of nations granting debt write-offs to Guyana in keeping with the Paris Club Agreement of January 14, 2004 and the UK Debt Relief Policy.
In a letter to the government via its High Commission, the UK government announced that it is forgiving 100% of the country's commercial debt worth $12.14 billion or 34 million pounds sterling, a release from the Government Information Agency (GINA) said yesterday.
This is the second significant debt relief received by this country in recent weeks following that accorded by the Inter-American Develop-ment Bank and the neighbouring Republic of Trinidad and Tobago.
According to the release, the UK in its letter to Finance Minister Saisnarine Kowlessar said the country had no further obligation remaining under the existing UK/Guyana Debt Agreement with all being terminated.
The debt write-off is part of the UK's commitment of support for countries, which qualified for such relief under the Heavily Indebted Poor Countries Initiative (HIPC).
The release further noted that savings from this write- off would be used to improve social services and fight poverty in keeping with goals of the Poverty Reduction Strategy Paper and the Millennium Development Goals.