Russia Cancels $1.1Bn Dollars Debt Owed By Ethiopia

April 1, 2005

Russia has cancelled 1.104 billion dollars of Ethiopia's 1.268 billion dollars debt at a ceremony held in Moscow last week. The debt cancellation agreement was signed by the Russian Finance Minister and his Ethiopian counterpart on behalf of their respective governments.

Russia has agreed that Ethiopia pays the remaining 160 million dollars debt over the next 30 years.

The debt cancellation was made in the spirit of the agreement the Paris Club countries had reached and signed in 2004. According to the Russian Minister of Finance, Mr Alexei Kudrin, Russia has agreed to the cancellation of the debt in support of Ethiopia's poverty reduction programme. It is to be recalled that at the United Nations and, at the G8 summit, Russia had expressed its support for Ethiopia's efforts towards ensuring peace and development.