Australia Welcomes Paris Club Commitment to Tsunami Victims

Following a meeting of the Paris Club overnight, the Australian Government has agreed to join other creditor countries in offering the governments of tsunami-affected countries an immediate postponement of scheduled debt repayments.

The Paris Club has agreed that debt payments will not be expected until the World Bank and the IMF have fully assessed the affected countries' reconstruction and financing needs.

Australia is pleased that members of the Paris Club have recognised that debt relief should not be used as a substitute for more effective methods of providing assistance.

We are also encouraged that the debt deferral will be in addition to the direct assistance already committed by Paris Club members.

The Australian Government's main contribution remains the $1 billion Australia-Indonesia Partnership for Reconstruction and Development package which provides direct and targeted assistance.

Following the World Bank and IMF needs assessment, and in consultation with the affected countries, the Australian Government would be willing to consider whether further debt deferrals are necessary.

Media Inquiries: Mr Downer's office 02 6277 7500 - DFAT Media Liaison 02 6261 1555