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Pak to repay USD 1.78 billion debt ahead of time
Islamabad, Oct 13: Pakistan said today it would repay USD 1.78 billion in debt to the World Bank and Asian Development Bank ahead of time as it seeks to reduce its foreign debt from USD 35 to 33.5 billion.
Islamabad, Oct 13: Pakistan said today it would
repay USD 1.78 billion in debt to the World Bank and Asian
Development Bank ahead of time as it seeks to reduce its
foreign debt from USD 35 to 33.5 billion.
"We sent formal notices to the World Bank and Asian
Development Bank (ADB) to prepay USD one billion 78 million
of debt during this financial year (July 2003 to June
2004)," Finance Minister Shaukat Aziz announced at a press
conference.
Pakistan's total foreign debt stood at USD 35 billion at the end of June 2003 compared to USD 38 billion at the end of financial year 1999-2000, Aziz said.
"Our target for this year is USD 33.5 billion," the minister said.
The loans to be repaid by next year were obtained between 10 and 15 years ago at interest rates ranging from 4.6 per cent to 11 per cent.
Seven ADB loans with a combined worth of USD 596.7 million were due in between 2007 and 2019, with interest rates of up to 11 per cent, Aziz said.
The World Bank loans, worth USD 481.7 million, were due between 2005 and 2013 with interest rates between 4.6 per cent to 7.6 per cent, Aziz said.
"The fiscal space we will save due to reduction in the interest rates or the interest cost will then be available for development, for the social sector," Aziz said.
Bureau Report
Pakistan's total foreign debt stood at USD 35 billion at the end of June 2003 compared to USD 38 billion at the end of financial year 1999-2000, Aziz said.
"Our target for this year is USD 33.5 billion," the minister said.
The loans to be repaid by next year were obtained between 10 and 15 years ago at interest rates ranging from 4.6 per cent to 11 per cent.
Seven ADB loans with a combined worth of USD 596.7 million were due in between 2007 and 2019, with interest rates of up to 11 per cent, Aziz said.
The World Bank loans, worth USD 481.7 million, were due between 2005 and 2013 with interest rates between 4.6 per cent to 7.6 per cent, Aziz said.
"The fiscal space we will save due to reduction in the interest rates or the interest cost will then be available for development, for the social sector," Aziz said.
Bureau Report