Paris Club reduces Ghana's debt

By Reshmi Basu

New York, July 22 - The Paris Club creditor countries said they would cancel $821 million in debt owed to them by Ghana as part of an initiative to provide relief to impoverished indebted nations.

The Paris Club members will cancel $821.5 million of debt and most of the creditors cancelled a further $823 million in bilateral debt relief under the terms of the enhanced Debt Initiative for Heavily Indebted Poor Countries laid out by the International Monetary Fund and the International Development Association.

As a result, the debt owed to the Paris Club has been reduced to $300 million from $1.94 billion as part of the accord and additional bilateral assistance.

The Paris Club said its decision reflects the West African nation's strong commitment to economic and structural reforms.

Ghana's public debt was estimated to be $7.5 billion in nominal value as at end 2003.

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