PMFORUM Breaking News
Breaking News in the Project Management World
Thursday, March 18, 2010
Afghanistan Debts Cancelled by Paris Club
According
to the U.S. State Department, the United States welcomes the accord
announced on 17 March 2010 by Afghanistan and its Paris Club creditors,
including the United States, to cancel all debts owed by Afghanistan to
Club members.
The decision represents a great achievement and an important milestone for Afghanistan and reflects the international community's acknowledgment of the progress the country has made in strengthening its economy. Lifting the debt burden marks a crucial step on Afghanistan's road to economic sustainability.
The
accord will implement Afghanistan's completion point treatment under
the Enhanced Heavily-Indebted Poor Countries Initiative. The accord
also recognized Afghanistan's performance under its International
Monetary Fund (IMF) program and its progress on adopting and
implementing economic reforms in a very challenging environment.
Completion point, including the new accord, will bring cancellation of an estimated $1.6 billion in debt from the Paris Club, IMF, World Bank and other creditors. It ultimately results in a 96 percent reduction of the debt inherited by Afghanistan's government, which was estimated at US$11.6 billion in 2006 (in net present value terms).
Since 2002, US Treasury advisors have worked closely with the Afghan Ministry of Finance to streamline the budget process, improve the payment system for government employees, restructure Afghanistan's debt, and establish a Debt Management Unit within the Ministry of Finance, which played a crucial role in today's negotiations.
Editor's note: The cancellation of Afghanistan's debt will strengthen the country's fledgling government in many ways, and help create an environment for attracting foreign direct investment. Clearly projects and project management will play important roles in the development and growth of the country. We hope leaders in both the public and private sectors there will recognize the need for modern project management based on international best practices and standards.
The decision represents a great achievement and an important milestone for Afghanistan and reflects the international community's acknowledgment of the progress the country has made in strengthening its economy. Lifting the debt burden marks a crucial step on Afghanistan's road to economic sustainability.
Completion point, including the new accord, will bring cancellation of an estimated $1.6 billion in debt from the Paris Club, IMF, World Bank and other creditors. It ultimately results in a 96 percent reduction of the debt inherited by Afghanistan's government, which was estimated at US$11.6 billion in 2006 (in net present value terms).
Since 2002, US Treasury advisors have worked closely with the Afghan Ministry of Finance to streamline the budget process, improve the payment system for government employees, restructure Afghanistan's debt, and establish a Debt Management Unit within the Ministry of Finance, which played a crucial role in today's negotiations.
Editor's note: The cancellation of Afghanistan's debt will strengthen the country's fledgling government in many ways, and help create an environment for attracting foreign direct investment. Clearly projects and project management will play important roles in the development and growth of the country. We hope leaders in both the public and private sectors there will recognize the need for modern project management based on international best practices and standards.