Posted by Oluyinka Akintunde on
Nigeria and Spain have signed a fifth bilateral agreement that would ensure the cancellation of $127.758million (about N16.608billion) out of a total debt of $227.591million (about N29.586billion) owed by Nigeria to Spain.
Nigeria and Spain have signed a fifth bilateral agreement that would ensure the cancellation of $127.758million (about N16.608billion) out of a total debt of $227.591million (about N29.586billion) owed by Nigeria to Spain.
The Minister of Finance, Dr. Ngozi Okonjo-Iweala, signed the agreement on Monday in Madrid on behalf of the Nigerian government while the President of the Spanish Export Credit Agency, Mr. John Bedosa, signed for the Spanish government.
The fifth bilateral agreement is a follow-up to the Agreed Minute signed between Nigeria and the 15 Paris Club creditor countries and a formalisation of the monumental debt relief package granted to Nigeria by the Paris Club on October 20, 2005.
Confirming the agreement in a statement in Abuja, the Special Assistant (Information) to the Minister of Finance, Mr. Paul Nwabuikwu, said the cancellation of Nigeria's $127.758million by the Spanish Government would be in two phases.
Nwabuikwu said, 'The first phase, which takes immediate effect involves the cancellation of $53,546,640. The remaining $74,212,029 will be cancelled in April 2006.
'The signing of this agreement will facilitate the resumption of normal bilateral economic relations between Nigeria and Spain, including the restoration of the Export Credit Cover by the Spanish Export Credit Agency, which is needed to improve trade and investment relations."
He quoted the finance minister as expressing appreciation to the Spanish authorities for their support in consummating the debt deal.
The agreement signed between Nigeria and Spain brought to 11 the number of agreements so far signed by the country with her creditors.
Japan had on February 14, 2006 waived Nigeria's debt amounting to $2.38billion following the signing of a fifth bilateral agreement between the two countries.
THE PUNCH, Wednesday, February 22, 2006