United States and Sierra Leone Sign Bilateral Debt Relief Agreement Under the Terms of the Paris Club Accord
United States Ambassador to Sierra Leone Thomas N. Hull and Sierra Leonean Minister of Finance John O. Benjamin signed a bilateral debt relief agreement today to cancel 100 percent of Sierra Leone's eligible debt to the United States Government. The agreement implements the multilateral accord signed with the Paris Club of official creditors on January 24, 2007 and reflects Sierra Leone's successful completion of economic reforms under the Enhanced Heavily-Indebted Poor Countries (HIPC) Initiative. Under the agreement, the United States commits to forgive its approximately $58 million share of the $363 million Sierra Leone owed to all Paris Club creditors.
Through the HIPC Initiative, the United States and its partners in the international community seek to help the most heavily indebted poor countries relieve their unsustainable debt burdens. Under its program of economic reform overseen by the International Monetary Fund, Sierra Leone made solid progress in reducing poverty and enhancing macroeconomic stability. This final phase of debt relief frees additional resources that will enable the Government of Sierra Leone to make further progress on these objectives under its Poverty Reduction Strategy Program.
As the country recovers from a brutal civil war that ended only in 2002, the United States supports Sierra Leone's efforts in consolidating peace, restoring and reforming government, and stimulating economic growth.
