23 May 2008
As part of the Heavily Indebted Poor Countries (HIPC) initiative first set up in 1996 by the World Bank and the International Monetary Fund, Norway has agreed to cancel Gambia's debts, amounting to around $2.6 million.
The HIPC initiative aims at reducing poor countries' debts and therefore helping them achieve the UN Millennium Development Goals by 2015, aiming at eradicating poverty throughout the globe.
As reported by The Norway Post, the debt cancellation will not modify the Norwegian Debt Relief Strategy and Norway will continue to provide assistance to any poor country.
The new debt relief will enable the Gambia to use its resources more efficiently to improve the country's overall economy and achieve the Millennium Development Goals.
Indeed, according to The Point, the government of the Gambia spent 40.3 per cent of its budget to pay off interests of contracted debts in 2004.
The Gambia has also recently become eligible to access funding from the United States Millennium Challenge Account which intends to help promoting economic growth in the country.
