Wolfowitz praises deal to cancel debt of poor
New World Bank chief Paul Wolfowitz praised a historic deal to cancel the foreign debt of some of the world’s poorest nations today and said he was hopeful debt relief was also on the way for Africa’s biggest debtor, Nigeria.
Wolfowitz spoke to reporters soon after arriving in the Nigerian capital, Abuja, on the first leg of a four-nation Africa tour – his first since taking over as head of the 184-nation development bank last week.
“I’m really delighted ... because I think it’s a very important, successful outcome,” Wolfowitz said.
Finance ministers from the globe’s richest countries, grouped together in the G8, agreed yesterday to cancel US 40 billion (£22 billion) worth of debt owed by 18 of the world’s poorest nations, most of them in Africa. Much of the cancelled debt was owed to international institutions such as the World Bank.
Nigeria is Africa’s most populous nation and the most heavily indebted country on the continent, owing US 35 billion (£19 billion). But as the world’s seventh-largest oil exporter, Nigeria doesn’t meet the World Bank definition of a low-income country.
The G8 finance ministers said Nigeria’s foreign debt will be considered separately by the Paris Club of international lenders.
Wolfowitz said creditor nations “will hopefully come up with a deal to forgive Nigeria’s debt. I’m very positive that something serious will happen.”
