Paris Club agrees to cancel Ethiopia’s external debt

PARIS, May 14, 2004 (AP) — The Paris Club of creditor countries has agreed to cancel Ethiopia’s external debt as a reward for reforms in the east African country.

In a statement late Thursday, the Paris Club noted Ethiopia’s “strong commitment” to economic and structural reforms.

The statement welcomed Ethiopia’s “determination to implement a broad-based and rigorous economic program which should provide the basis for sustainable growth and a comprehensive poverty reduction strategy.”

It said a further agreement on new soft terms of World Bank and International Monetary Fund financing as part of the debt agreement will be signed in the coming weeks.

The Paris Club is an informal group of creditor governments from major industrialized countries.