June 20, 2002
The West African country of Mauritania has had $1.1bn (£740m) of debt wiped clean from its slate.
The debt relief was granted after Mauritania satisfied the criteria of the International Monetary Fund (IMF) and the World Bank under a new scheme aimed at helping the world's poorest and most heavily indebted countries.
To qualify for debt relief, countries have to present a long-term strategy to reduce poverty, and implement certain economic policies and structural and social reforms.
The IMF said Mauritania had successfully reduced poverty to 46% of its population from 50% in 1996. It also managed to grow its economy by 4.8% in 2001. And it has met health objectives by making essential drugs and contraceptives more readily available and launching an information campaign about Aids.
Outstanding debt halved
The agreement means that $622m of principal debt has been cancelled, equivalent to half of Mauritania's outstanding debt. The total amount of debt relief rises to $1.1bn if the value of interest payments is included.
Mauritania is the sixth country to be granted debt relief under the scheme, after Bolivia, Burkina Faso, Mozambique, Tanzania and Uganda. The debts were owed to the IMF, the World Bank and bilateral lenders.
More Information Poverty, Debt, and Development
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