U.S. Cancels $100 Million of Nicaraguan Debt

MANAGUA (AFP) – The UnitedStates forgave Nicaragua’s debt of $100million to the nation on Tuesday as partof the Highly Indebted Poor CountriesInitiative (HIPC), according to officialsources.The agreement that alleviated thedebt was signed in Nicaragua’s CasaPresidencial by the president of theCentral Bank of Nicaragua (BCN),Mario Alonso, and U.S. AmbassadorBarbara Moore.Moore explained that the cancellationcomes as part of the United States’responsibilities as a member of theParis Club, an informal group of creditorswhose role is to find solutions topayment challenges faced by nations indebt.Since Nicaragua joined HIPC inJanuary of this year, approximately $4.5billion of the nation’s $6.2 billion debthas been alleviated.Earlier this month, Russia agreed topardon the $344.4 million Nicaraguaowed it, a decision that followed Japan’sannoun-cement that it would pardonNicaragua’s $118.4 million debt (TT,Aug. 6).