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07.03.2005 Business & Finance

Sweden forgives Ghana $US14.5mn debt

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Accra, March 7, GNA - The Swedish Government has forgiven Ghana 14.5 million dollars debt under an agreement between Ghana and the Paris Club to cancel 90 per cent of her debts under the Highly Indebted Poor Countries (HIPC) initiative.

This was contained a statement issued by Mr P=E4r Nuder, Swedish Minister of Finance, and released by the Swedish Consulate in Ghana on Monday.

The statement said the debt relief of 14.5 million dollars out of 18.3 million dollars was within the framework of the HIPC initiative to enable Ghana to achieve a sustainable debt portfolio and lay the ground for sustainable development.

The money was due to Sweden between June 1, 2001 and September 30, 2004, the statement said.

Ghana is now left with a debt of 3.2 million dollars to be paid to Sweden between 2009 and 2025.

The HIPC Initiative was devised to assist the poorest of the most highly indebted countries. Ghana opted for HIPC during the first term of President John Agyekum Kufuor in 2001 and reached the Completion Point in July 2004.

The Paris Club of creditors is a group of 19 industrialised countries that lends money on concessionary terms.

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