The representatives of the Paris Club creditor countries met with the Republic of Liberia on 16 September 2010 and agreed on a reduction of the debt following the Republic of Liberia having reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) on 29 June 2010.
Paris Club creditors welcomed the Republic of Liberia's determination to implement a comprehensive poverty reduction strategy and an ambitious economic program providing the basis for sustainable economic growth.
In order to contribute to restore the debt sustainability of the Republic of Liberia, they decided to cancel U.S. $1,260 million in nominal terms, which represents the Paris Club's share of the effort in the framework of the enhanced HIPC Initiative. In addition, creditors also committed on a bilateral basis to cancel the remaining USD 107 million.
As a result of this agreement and additional bilateral assistance, the Republic of Liberia's debt to Paris Club creditors will be entirely cancelled.
The Republic of Liberia committed to use the resources freed by this debt treatment to priority areas (health, education and basic infrastructures) identified in the country's poverty reduction strategy.
Creditors welcome and support the Government of the Republic of Liberia's commitment to seek comparable treatment from all their other external creditors (including other creditors countries and commercial creditors).