Press release No: 2006/GY/June 29
Contact:
Amy Stilwell (202) 458-4906
astilwell@worldbank.org
Patricia da Camara (202) 473-4019
pdacamara@worldbank.org
WASHINGTON, June 29, 2006 – Starting on July 1, 2006, the World Bank will cancel the International Development Association (IDA) debt of Guyana under the Multilateral Debt Relief Initiative (MDRI). Guyana will receive US$322 million, which is the total amount of additional IDA debt relief provided under the MDRI and the IDA portion of debt relief already committed under the Heavily Indebted Poor Countries Initiative (HIPC).
“We have secured a level of financing commitments from donors that allows us to begin implementing the Multilateral Debt Relief Initiative,” said World Bank President Paul Wolfowitz. “Additional debt relief will help Guyana channel resources into programs that directly help the people who need it most — the poor who need and deserve a better education, better health services, greater access to clean water, and greater opportunities to escape poverty.”
Countries that have “graduated” – called reaching the completion point - from the HIPC Initiative are eligible for additional debt relief under the MDRI. Guyana will receive estimated MDRI relief in the amount of US$189 million, which is in addition to the US$133 million in IDA debt relief committed under the HIPC initiative.
“We are delighted that Guyana has qualified to receive additional debt relief under the MDRI. These resources will support the Government of Guyana in its endeavors to achieve the Millennium Development Goals,” said Caroline Anstey, World Bank Country Director for the Caribbean.
Background:
The Multilateral Debt Relief Initiative (MDRI), which will cancel the International Development Association (IDA) debt of some of the world’s poorest countries, will take effect on July 1, 2006. Under the MDRI, IDA is expected to provide some US$37 billion in debt relief over 40 years. This is in addition to some US$17 billion of debt relief already committed by IDA under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative.
Initially, 19 countries will receive 100 percent cancellation of their eligible debt: Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tanzania, Uganda and Zambia. The remaining HIPC countries (see HIPC Web Site) will be eligible for debt cancellation once they have completed the requirements of the HIPC Initiative.
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For more information on the World Bank’s work in Guyana, please visit: http://www.worldbank.org/gy
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