United States cancels 72.6 million dollars owed by Ethiopia

ADDIS ABABA, Dec 30 (AFP) — The United States is to write off $72.6m debt owed by Ethiopia, following an agreement signed in Addis Ababa on Thursday between the two countries, Ethiopian News Agency (ENA) reported.

The debt cancelled will enable Ethiopia implement ongoing poverty reduction programmes, Ethiopian minister of state for finance and economic development Mulu Ketsela said during the signing ceremony, the agency said.

The US government has written off 100% of the debt Ethiopia owed to Washington, Mulu said, pointing out that the cancellation surpassed an agreement Ethiopia signed with the Paris Club creditors for 90% of debt cancellations.

“The debt cancellation will be hugely significant in Ethiopia’s multi-sectoral development endeavours,” ENA quoted Mulu as saying.

The United States also cancelled a $29.2m owed by Ethiopia last January.