The government of Japan has cancelled 100 per cent of Ethiopia’s outstanding debt amounting to 14.4 million USD.

The debt cancellation was made as per the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative and the Fourth Paris Club Agreement.

Minister of Finance and Economic Development, Sufian Ahmed and Ambassador of Japan to Ethiopia, Kenjiro Izumi signed the debt cancellation agreement here yesterday.

As stipulated in the agreement, Ethiopia would use the saving drawn from the debt relief to finance projects related to poverty reduction programmes in the country.

Ambassador Izumi said on the occasion, Japan has been tackling the debt issue within the international framework.

The loan was allocated for the expansion of the Bole International Airport and the establishment of well drilling agency to enhance ground water development.

Ambassador Izumi said as the debt cancellation is for all the remaining commercial debts, Japan completes the cancellation of all Ethiopia’s debts to Japan.

Izumi said in addressing the debt issue facing the poorest countries, Japan has contributed approximately 5.4 billion USD to the 27 countries for which the Enhanced HIPC Initiative applies.