Central African Republic in debt deal

PARIS – The Paris Club of creditor countries and the Central African Republic have reached agreement on restructuring US$36,1 million in debt, the Paris Club said on Friday.

The group said the sum covered US$28,4 million of arrears and late interest and would lead to the cancellation of debt totalling US$9,9 million. The Paris Club said the deal followed the approval by the International Monetary Fund in December of an economic programme aimed at reducing poverty.Twelve creditor countries took part in the discussions with a delegation from the Central African Republic, as well as representatives from the IMF and the African Development Bank.The country put its relations with international organisations back on track last November when it cleared its arrears to the World Bank, thanks to a loan by the French government and a grant by the World Bank.The former French colony has been trying to resurrect its ties with the international community after years of political and economic instability that saw foreign governments gradually withdraw aid and close embassies.The country was characterised by the development community as an “aid orphan” when donors withdrew assistance to the government.It is one of the poorest countries in the world despite its diamond wealth, with about 72 per cent of its population living below the poverty line.Nampa-ReutersThe Paris Club said the deal followed the approval by the International Monetary Fund in December of an economic programme aimed at reducing poverty.Twelve creditor countries took part in the discussions with a delegation from the Central African Republic, as well as representatives from the IMF and the African Development Bank.The country put its relations with international organisations back on track last November when it cleared its arrears to the World Bank, thanks to a loan by the French government and a grant by the World Bank.The former French colony has been trying to resurrect its ties with the international community after years of political and economic instability that saw foreign governments gradually withdraw aid and close embassies.The country was characterised by the development community as an “aid orphan” when donors withdrew assistance to the government.It is one of the poorest countries in the world despite its diamond wealth, with about 72 per cent of its population living below the poverty line.Nampa-Reuters