US reschedules Nigeria’s debt
By
Sep 12, 2003, 19:00

The United States (US) on 11 September signed a debt rescheduling agreement that will give Nigeria an 18-year grace and a three-year moratorium to repay the $924.3million (about N117.9billion) it owes American companies and agencies.

The agreement is the ninth in a series, which began in December 2000, when Nigeria signed an agreement for debt rescheduling with countries that make up the Paris Club. Two weeks ago, a similar deal was struck with the Kingdom of Belgium, which rescheduled Nigeria's $444million (about N56.7billion) debt.

Signing on behalf of the Nigerian Government, the Minister of Finance, Dr Ngozi Okonjo-Iweala, said that agreements with three other countries – Japan, the Netherlands and Denmark - would be signed within the month.

She appealed to the Italian Government, the only country with which such an agreement has not been concluded, to hasten the procedure for facilitating negotiations.

The Minister reaffirmed Nigeria’s commitment to the implementation of all bilateral agreements signed. She also emphasised this Administration’s determination to reduce Nigeria’s external debt burden through discussions with creditor partners.

According to Okonjo-Iweala, the agreement represents a golden opportunity for the resumption of normal business, trade and investment relations between Nigeria and the USA. Meanwhile, she also called on the USA to accelerate the restoration of insurance coverage by the Export-Import Bank for Nigerian. The coverage would safeguard imports from America, especially as they concern private sector organisations in Nigeria.

Responding to the Minister, the US Charge d’Affaires, Mr. Roger Neece, who signed on behalf of his country, said the agreement was in compliance with a December 13 2000 recommendation by Paris Club members for the consolidation and rescheduling of certain Nigerian debts.

Neece also said that the US led the plea for the Paris Club to reschedule $23.4billion of Nigeria’s foreign debts, which amount to about four-fifths of its outstanding external debts.

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