The Norwegian Government has decided to implement the decision to grant Benin 100 per cent debt relief. This decision is in accordance with Norway’s debt relief strategy, and is taking place in connection with the initiative for debt relief taken by the World Bank and the International Monetary Fund, the HIPC (Heavily Indebted Poor Countries) initiative. The debt relief will not be covered by the development assistance budget.

Commenting on the matter, Ms Anne Kristin Sydnes, minister of international development, said that comprehensive debt relief is a prerequisite for development and poverty reduction in Benin. At the same time she calls on other creditor countries to grant 100 per cent debt relief to the poorest and most heavily indebted countries.

"We intend to continue working equally hard for international debt relief until all the poorest countries have adequate debt settlement arrangements," said Ms Sydnes.

In accordance with the agreement, Benin’s debts will be cancelled as they become due up until the end of the debt settlement period. A final agreement on cancelling all outstanding debts will probably be made at the end of the year. This depends on when the matter is dealt with in international fora.