Russia writes off Ethiopia's 1.1-billion-dollar debt

A 1.1-billion-US-dollar debt cancellation agreement has been signed between Ethiopia and Russia, the Ministry of Finance said Wednesday.

Getachew Admassu, public relations officer with the ministry, told journalists that Russia has canceled 1.104 billion dollars of Ethiopia's 1.268-billion-dollar debt.

Ethiopian Minister of Finance Sufian Ahmed and Russian Finance Minister Alexei Kudrin signed the agreement at a ceremony held in Moscow last week, Getachew said.

Russia has agreed that Ethiopia will pay the remaining 160-million-dollar debt over the next 30 years.

The debt cancellation was made in the spirit of the agreement Paris Club countries had reached and signed in 2004.

The Paris Club creditors have agreed to write off Ethiopia's debt after the country had effectively met the conditions and reached the completion point under the enhanced framework of the Heavily Indebted Poor Countries (HIPC) Initiative in April 2004.