Spain to propose debt moratorium for tsunami-hit countries
6/1/2005 11:12
Spain will ask the Paris Club to grant a debt moratorium for the
tsunami-hit countries, said the Spanish government on Wednesday.
The Economy
and Finance Ministry said the postponement of the repayments will let the
countries have more resources to meet the need of the victims of the disaster
and reconstruction.
The Paris Club will discuss the issue in Paris on Jan.
12.
On Dec. 26, an 8.7-magnitude underwater earthquake struck off the
Indonesian island of Sumatra and triggered tsunami which also hit India, Sri
Lanka, Malaysia and four other Asian countries, killing about 150,000
people.
Analysts estimate the disaster has caused about US$14 billion of
losses.
The Asian countries owe Spain 513 million euros (about US$667
million). Of the debt, 80 percent goes to Indonesia, the most affected country
by the disaster.
The Spanish government is to push for discussions on details
of the moratorium, which would represent a debt relief of 2.25 billion euros
(about US$2.9 billion).
The Paris Club is an informal group of official
creditors whose role is to find coordinated and sustainable solutions to payment
difficulties experienced by debtor nations.
Last week, French President
Jacques Chirac and German Chancellor Gerhard Schroeder called on the Paris Club
to put a debt moratorium on tsunami-hit countries.
Xinhua
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