The Paris Club of creditor nations on Wednesday announced an "immediate and
unconditional" debt moratorium for Sri Lanka, Indonesia and Seychelles, hit by
tsunami on Dec. 26.
"It is an offer by the Paris Club that has not yet been formally accepted by
the countries concerned: Sri Lanka, Indonesia,and The Seychelles," the president
of the 19-member informal organization, Jean-Pierre Joyuet told a press
conference here.
"This measure takes effect immediately. It will allow countries affected to
use all available resources for humanitarian needs and reconstruction," he said.
"In this exceptional situation, creditors wished that the suspension not be
submitted to any conditions, neither an accord with the IMF (International
Monetary Fund), nor to comparable treatment by private creditors," he added.
IMF and the World Bank will make an evaluation of needs to allow the Paris
Club to refine its answer in conformity with the situation of the applicant
countries, he added.
Indonesia's foreign debt totals around 132 billion dollars (100.7 billion
euros), and Sri Lanka's foreign debt is roughly 7.7 billion dollars.
Some tsunami stricken countries such as India, Malaysia and Thailand have not
make the relief request.
The principle of a debt repayment had been validated last week by the Group
of Seven most industrialized nations (G7) and by most Paris Club members.
Founded in 1956, the Paris Club groups major industrialized countries,
counting currently 19 members: Australia, Austria, Belgium, Britain, Canada,
Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands,
Norway, Russia, Spain, Sweden, Switzerland and the United States.