Comoros may receive debt help

12 April 2010

Infrastructure in the Union of the Comoros could see improvements after the country was granted debt relief.

The executive boards of the International Monetary Fund and the World Bank's International Development Association agreed the status under the Heavily Indebted Poor Countries Initiative.

However, this does not yet mean that Comoros - an island nation situated in the Indian Ocean - will see immediate assistance. It will first have to qualify for the initiative at decision point.

If the country does indeed qualify for the status, it could see its resources freed-up and able to be spent on areas such as health and education facilities.

Johannes Zutt, World Bank country director for Comoros stated: "The need for debt relief in Comoros is particularly salient, because the resources available to support the most basic public investments in physical and human capital have been constrained."

But economic reforms in the country have encouraged the World Bank in its decision, he added.

Category: General