Comoros has met conditions to start receiving debt relief under the Heavily Indebted Poor Countries Initiative, the International Monetary Fund (IMF) and World Bank said.
“The … IMF and the World Bank’s International Development Association (IDA) have determined that … Comoros has taken the necessary steps to reach its decision point under the enhanced …Heavily Indebted Poor Countries (HIPC) Initiative,” IMF said in a statement late yesterday.
“The decisions by the … two institutions mark a step towards Comoros receiving $144.8 million in net present value terms in debt relief.”
IMF said that for Comoros to receive the full relief it will need to improve public financial management, public expenditure policy and external debt management among others.
“Debt relief will … also free up resources to provide health care, education and other essential services to improve the livelihoods of Comorians, especially the poor,” Johannes Zutt, World Bank Country Director for Comoros, said in the statement.
The Comoros, sandwiched between Madagascar and southern Africa, has a turbulent history with some 20 coups, or attempted coups, since declaring independence from France in 1975.
IMF forecasts Comoros’ economy to grow by up to 2 percent in 2010 from 1.8 percent last year.
Pic: Comoros President