Paris Club considers debt relief for disaster-hit states

12th January 2005, Comments 0 comments

PARIS, Jan 12 (AFP) - The Paris Club, an informal creditor group of the world's 19 wealthiest nations, is set to agree on freezing debt repayments for tsunami-hit Indonesia, Sri Lanka and the Seychelles, French Finance Minister Herve Gaymard said Wednesday.

PARIS, Jan 12 (AFP) - The Paris Club, an informal creditor group of the world's 19 wealthiest nations, is set to agree on freezing debt repayments for tsunami-hit Indonesia, Sri Lanka and the Seychelles, French Finance Minister Herve Gaymard said Wednesday.

Indonesia, Sri Lanka and the Seychelles "will be the three countries I think which will accept this proposition," Gaymard told French radio RFI.

The other countries struck by the December 26 tsunami have "a lower level of indebtedness than the others and do not want their credit rating to be downgraded on the international financial markets," he explained, citing particularly the case of Malaysia and Thailand.

The Paris Club was meeting in the French capital Wednesday to discuss the situation.

Many members already have called for the immediate suspension of payments by tsunami-struck South Asian states which have requested such relief, making an agreement almost certain.

© AFP

Subject: French News

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