The Gambia may receive debt reduction from Paris Club creditors

By Devika Patel

Knoxville, Tenn., Jan. 24 - Republic of the Gambia may be forgiven some of its debt by Paris Club creditors, according to a Paris Club press release.

The club's representatives met on Jan. 24 and agreed to recommend to their governments a reduction of the debt owed by the Gambia, because the country reached its completion point under the enhanced initiative for the Heavily Indebted Poor Countries Initiative in December.

The release said the creditors "welcomed the Republic of the Gambia's determination to implement a comprehensive poverty reduction strategy and an ambitious economic program providing the basis for sustainable economic growth."

The Gambia's debt to the creditors, as of Dec. 1, was estimated to be $40 million.

In order to contribute to the restoration of the country's debt sustainability, the club's creditors decided to recommend their governments cancel $11.64 million of the Gambia's debt.

The Paris Club is an informal group of creditor governments from major industrialized countries.

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