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$800 m debts rescheduling All issues being settled at fast track

ISLAMABAD: Outstanding issues are being settled at fast track to sign the debt rescheduling accords worth over $800 million with the rest of five Paris Club member countries within the extended span up to (February 29), official sources said here on Saturday.

"All outstanding issues to be settled with the five Paris Club member countries, including Japan, UK, Italy, Switzerland and Finland, are expected to be resolved by next month to ink the debt relief pacts during February 2000," sources added.

There is no pending issue with Finland, sources said, adding that the signing was delayed because Finnish Ambassador was not in town and is scheduled to return Islamabad on February 21.

Major chunk of the total amount around $700 million, is to be rescheduled by Japan out of the five member countries, sources added.

Rescheduling agreements with 13 Paris Club member countries valuing over $2 billion, have already been signed, out of total 18 member countries.

Negotiations are also going on with six non-Paris Club member countries including China, Czech, UAE, Kuwait, Saudi Arabia and Libya for signing rescheduling agreements worth $350 million.

China has agreed for rescheduling of its debt on soft terms during the recent visit of Chief Executive, General Pervez Musharraf, to Beijing.

Pakistan and Belgium signed a bilateral pact for consolidation and rescheduling of debt $6.6 million (BF 257.550 million) earlier this week.

ODA loans available on concessional rates ranging from zero to 2 percent on average have been rescheduled for 20 years including 10 years grace period.

While non-ODA debt secured on market rate (Libor plus 0.5 percent) have been rescheduled with 15 years repayment period, commencing from 2003.

Of total debt agreed to be rescheduled in January 1999 worth $3.3 billion, ODA broadly constituted two-thirds and non-ODA one-third of the loan.

Non-Paris Club member states are being convinced to sign debt relief accords on bilateral basis and similar terms and conditions agreed with Paris Club member countries, sources said. APP