Norway cancels illegitimate debt owed by 5 countries
Suggests lending was irresponsible in the first place
6 October 2006
The country will cancel $80 million in illegitimate debt owed by Egypt, Ecuador, Peru, Jamaica and Sierra Leone.
On October 2, Norway's Minister of International Development Erik Solheim announced that Norway is unilaterally and without conditions cancelling US$80 million in illegitimate debts owed by 5 countries: Egypt, Ecuador, Peru, Jamaica and Sierra Leone.
Norway's Government has, in effect, admitted that it's lending in these particular cases was irresponsible and motivated by domestic concerns, rather than an objective analysis of the development needs of the countries involved. The débacle involves the export of Norwegian ships to developing countries between 1976 and 1980. It exported these ships mainly to secure employment for a domestic ship-building industry in crisis, not because these ships served the development needs of the countries concerned. It is only fair therefore that Norway accept co-responsibility for the debts which resulted from these deals.
So far however, creditor countries have been incredibly reluctant to accept shared responsibility for negligent and often politically motivated and corrupt lending in the past. They have continued to insist that poor countries service these debts. Today however this practice effectively ended with the unilateral action of one government. Eurodad hopes that the Norwegian announcement will now prompt other creditor countries to open public and serious enquiries into their lending policies and practices of the past.
"This is a groundbreaking decision which has huge ramnifications for other lenders that acted irresponsibly in the past", said Eurodad's Gail Hurley. "We urge Norway to continue to be at the forefront of international efforts to gain recognition for illegitimate debt. It is not fair that the populations of debtor nations continue to pay the price of corrupt, negligent and politically motivated lending in the past. Today the silence has been broken and we urge other creditor countries, in particular in Europe, to follow Norway's bold lead".
Source: Eurodad
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