Bulgaria writes off US$2.9M Guyana debt

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[www.inewsguyana.com] – Bulgaria will forgive US$ 2.9 million of the debt that Guyana owes. The Council of Ministers approved a draft intergovernmental agreement between Bulgaria and Guyana, which regulates this debt.

As of December 31, 2012 the liabilities of Guyana to Bulgaria resulting from a barter protocol in 1984 amounted to USD 3,225 million.

Since 2004, Guyana has the status of “highly indebted and poor country” and as a result the Paris Club creditors have reduced the country’s obligations by 90%.

Traditionally, no country can hold a larger share of the debt of a highly indebted poor country than the percentage agreed with the Paris Club creditors.

The draft agreement between Bulgaria and Guyana provides for this maximum possible amount of debt to Bulgaria within a three year period. So in three years Bulgaria will receive US$ 322,000 and the remaining US$ 2.9 million will be recorded as Official Development Assistance from Bulgaria.

Guyana is a sovereign state on the northern coast of South America. It was originally colonized by the Netherlands. Later, it became a British colony and remained so for over 200 years until it achieved independence on 26 May 1966 from the United Kingdom.

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