BRAZZAVILLE (AFP) — Congo and the London Club of private creditors reached a deal on Thursday to cancel 80 percent of the central African country's estimated 2.5-billion-dollar debt.
The London Club will cancel 927 billion CFA francs (about 2.0 billion dollars, 1.4 billion euros) in debt, leaving 268 billion CFA francs, said Congo's finance minister, Pacifique Issoibeka.
"Funds freed up by the cancellation of the debt will be lodged at the central bank to finance sectors to help the poor: water, health, electricity, infrastructure and education," the minister said.
Congo last year gained access to an initiative in favour of highly indebted poor countries allowing up to 90 percent of their debt to be cancelled if they carry out International Monetary Fund programmes.
Congo reached an agreement with the IMF in 2004.
In 2006, the Paris Club of creditor countries cancelled 67 percent of Congo's eligible debt.
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