Japan will write off 680 million U.S. dollars in debt overdue from Bangladesh under a debt-relief agreement, private news agency UNB reported Tuesday quoting a press release.
Japanese and Bangladeshi governments on Tuesday exchanged notes on the Japanese debt-relief measure in the form of cancellation of repayment of about 680 million U.S. dollars, said a release from Japanese embassy in Dhaka.
The funds canceled under the agreement had been used for a number of projects including rehabilitation of a power plant, construction of a sanitary landfill in Dhaka, and road construction and maintenance projects, said the release.
"The government of Japan had decided the debt cancellation for Bangladesh to reduce its burden for its social and economic development," Japanese Ambassador to Bangladesh Masayuki Inoue said.
Both sides had already signed an agreement on debt cancellation of about 1,450 million U.S. dollars on March 21, 2004 and the government of Bangladesh was exempted from the repayment of the principals and payment of interests for Japan's ODA (Official Development Assistance) loan signed before 1988.
Since 2005, the following year of the agreement, the Japan Bank for International Cooperation has made the cancellation of the payment every fiscal year as the principals and interests became due.
Through the signed agreement on Tuesday, all the debt overhang on Bangladesh (approximately 680 million U.S. dollars) out of the cancellation agreed in March 2004 will be cleared, said the release.
Source:Xinhua
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