Norwegian Government cancels part of The Gambia’s debt

The Norwegian Government agreed today to cancel NOK 2.5 million of The Gambia’s debt to Norway.

The agreement is based on a multilateral framework agreement concluded in the Paris Club, a forum for creditor countries, in June this year. The debt treatment for The Gambia in the Paris Club is part of the international initiative to reduce the debts of the poorest and most debt-stricken countries (the Heavily Indebted Poor Countries, or 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.

The Gambia’s remaining NOK 7 million of debt to Norway will be cancelled when the country reaches the completion point defined under the HIPC initiative.

Source: Ministry of Foreign Affairs