The British government announced Monday that it will give Zambia 60 million pounds (620 mio. DKR) in aid to help this poor Southern African country finance its poverty reducing programmes.
The funds will be spread over a period of three years starting with 2005, British Secretary of State for International Development Hilary Benn said during a one-day visit to Zambia.
– It will be for the government of Zambia to determine how best to use the funds to meet its poverty reduction priorities in line with poverty reduction strategy over time, Benn said.
He also announced that Britain will cancel the rest of Zambias foreign debt to that country, which currently stands at 128 million pounds should Zambia qualify for debt relief under the Heavily Indebted Poor Countries (HIPC) initiative next month.
– The UK has already cancelled 65 percent of Zambias debt. The value of the last 35 percent is expected to be 128 million pounds, Benn said.
Zambia currently owes the international creditors a staggering debt of 6.8 billion dollars (38 milliarder DKR), which the country has been struggling to service after many years.
Zambia is expected to receive about a 3,8 billion dollar debt cancellation should the IMF and World Bank board approves the facility, which involves the country being put on a strict economic programme.
Kilde: The Push Journal
