The agreement is based on a multilateral framework agreement concluded in the Paris Club, a forum for creditor countries, in April this year. Guinea’s debt treatment in the Paris Club is part of the international initiative to reduce the debts of the poorest and most indebted countries, known as the Heavily Indebted Poor Countries (HIPC) Initiative.
In accordance with the Norwegian Debt Relief Strategy, the debt was cancelled without taking any funds from the development budget. The cancellation does not therefore affect the development assistance provided to other poor countries.
Guinea’s remaining debt to Norway will be cancelled when the country reaches the completion point defined under the HIPC initiative.
“A reduction in debt will make it easier for Guinea to improve its economy and rebuild the country after the conflict. I hope that Norway will be able to cancel the rest of the debt later this year,” said Minister Holmås.