Uganda will save about 3 million U. S. dollars annually in canceled debt repayments under 8.5 billion dollar debt relief plan of the African Development Bank (AfDB), local media reported on Thursday.

The plan is part of an initiative to ease the crushing financial burden faced by some of the world's poorest nations, following a similar initiative by the World Bank and the International Monetary Fund (IMF).

"The Multilateral Debt Relief Initiative (MDRI) is expected to give beneficiary countries an opportunity to reduce their debt service payments substantially, and through continued good performance, secure additional resource flows to help them attain the Millennium Development Goals," reported New Vision on Thursday, quoting a statement from the bank.

The board of the African Development Fund (AfDF), which is the concessional window of the AfDB Group, approved the MDRI early this month.

Over 33 African countries will benefit from the 8.5 billion dollar debt waiver initiative, which is aimed at entrenching promises by the G8 nations to cancel poor nations debts outlined last year.

The MDRI provides for 100 percent relief on eligible debt from three multilateral institutions, including the IMF, the International Development Association (IDA) of the World Bank, and the African Development Fund (AfDF), to a group of low-income countries. The initiative is intended to help them advance toward the United Nation's Millennium Development Goals, which are focused on halving poverty by 2015.

Source: Xinhua