Paris Club creditors agree to cancel nearly all Cote d'Ivoire debt

By Jennifer Chiou

New York, June 29 - Paris Club creditors announced an agreement under the enhanced initiative for the Heavily Indebted Poor Countries through which a substantial amount of the Republic of Cote d'Ivoire's debt will be canceled.

Representatives of the creditor countries met on Friday with representatives of the government of Cote d'Ivoire, and the creditors decided to cancel $1.77 billion of debt in order to contribute to restoring the debt sustainability of the country.

According to a news release, creditors "welcomed and supported" the commitment of Cote d'Ivoire to seek comparable treatment from all their other external bilateral and commercial creditors, including other creditor countries.

Paris Club creditors also said that they are willing to grant additional debt relief on a bilateral basis for $4,725,000,000.

This agreement and additional bilateral efforts will result in a 99.5% reduction of the country's debt.

Formed in 1956, Paris Club is an informal group of creditor governments from major industrialized countries.

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