France proposes debt relief for development pact

Part of Cameroon's debt to France could be forgiven under a bilateral debt-relief-for-development agreement, the French embassy in the Cameroonian capital, Yaounde, said in a communiqué. The proposed agreement was discussed at a meeting on Tuesday between French cooperation minister Charles Josselin and Cameroonian President Paul Biya. Under the mechanism "countries will continue to pay their debts but as soon as the reimbursement is received, France will provide its partners with the equivalent amount to be earmarked for anti-poverty initiatives," the communiqué, which was released at a news conference Josselin held in Yaounde, said. In Cameroon's case the debt relief would amount to about 90 million euros (just under US $80 million) and the agreement could be finalised by late 2003 or early 2004. "This is one of the most important debt relief agreements France will have concluded within the framework of the Heavily Indebted Poor Countries Initiative," the communiqué said. The HIPC Initiative, launched by the IMF and the World Bank in 1996, is aimed at eliminating unsustainable debt in the world's poorest countries. Under the new mechanism, France and each beneficiary country decide jointly on the anti-poverty programmes and projects to be funded. Priority sectors identified by France include primary education and professional training, primary health care and the fight against epidemics such as HIV/AIDS, equipment and infrastructure for communities, territorial management and the management of natural resources, the communiqué said. France has already concluded two such agreements, the embassy reported. The first was in November 2001 with Mozambique, followed by another in March 2002 with Uganda.