Agreement with Uganda on a stock of debt reduction

The representatives of the Paris Club creditor countries agreed on September 12, 2000 to recommend to their Governments a reduction of Uganda's stock of debt.

The representatives of the creditor countries took note that, given its strong commitment to economic and structural reforms as well as the burden of its external indebtedness, Uganda had reached in May 2000 its completion point under the Enhanced Initiative for the Heavily Indebted Poor Countries.

They welcomed Uganda's determination to implement a broad-based and rigorous economic program which should provide the basis for sustainable economic growth and a comprehensive poverty reduction strategy.

They decided to cancel M$ 145 due to them by Uganda which represents the Paris Club agreed share of the effort decided by the Boards of the IMF and the World Bank in the framework of the Enhanced Debt Initiative for the Heavily Indebted Poor Countries.

Uganda committed itself to seek comparable treatment from all its other external creditors, notably from other creditor countries.

In the context of the Enhanced HIPC Initiative, total relief in net present value terms from all of Uganda's creditors would amount to M$ 656.

With this operation, Uganda becomes the first country to benefit from Paris Club's commitment under the Enhanced Initiative for the Heavily Indebted Poor Countries.