AfDB cancels Tanzania’s debt

DAR ES SALAAM – The African Development Bank (AfDB) has announced the cancellation of US$644 million of Tanzania’s debt, officials said on Thursday.

In addition, the AfDB also issued a grant of US$73,35 million in support of the country’s poverty-reduction efforts, treasury officials said. “Tanzania has registered impressive macro-economic development and has exhibited good accountability of public finance,” AfDB president Donald Kaberuka told a news conference on Wednesday after signing an agreement with Tanzania’s finance minister Zakia Meghji.Kaberuka said the deal was “a significant government budget support facility to further enhance its poverty-reduction programmes during 2006 financial year.”He clarified that the debt cancellation would become effective in January 2007.”We believe the grant and debt cancellation …will mean a lot to Tanzania’s economy,” said Kaberuka, who is in the east African country on a four-day visit to inspect projects supported by his institution.Nampa-AFP”Tanzania has registered impressive macro-economic development and has exhibited good accountability of public finance,” AfDB president Donald Kaberuka told a news conference on Wednesday after signing an agreement with Tanzania’s finance minister Zakia Meghji.Kaberuka said the deal was “a significant government budget support facility to further enhance its poverty-reduction programmes during 2006 financial year.”He clarified that the debt cancellation would become effective in January 2007.”We believe the grant and debt cancellation …will mean a lot to Tanzania’s economy,” said Kaberuka, who is in the east African country on a four-day visit to inspect projects supported by his institution.Nampa-AFP