Tanzania's $644m debt cancelled
2006-08-10 09:35
Dar es Salaam - The African Development Bank (AfDB) has announced the cancellation of $644m of Tanzania's debt, say officials.
Treasury officials said that in addition, the AfDB also issued a grant of $73.35m in support of the country's poverty reduction efforts.
AfDB president Donald Kaberuka said: "Tanzania has registered impressive macro-economic development and has exhibited good accountability of public finance."
Kaberuka was speaking after signing an agreement with Tanzania's finance minister Zakia Meghji.
Kaberuka said the deal was "a significant government budget support facility to further enhance its poverty reduction programmes during 2006 financial year".
He clarified that the debt cancellation would become effective in January 2007.
Kaberuka said: "We believe the grant and debt cancellation will mean a lot to Tanzania's economy."
Kaberuka was in the east African country on a four-day visit to inspect projects supported by his institution.