Paris Club Debt Moratorium For Tsunami Victims

At 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 a moratorium on scheduled debt repayments for 2005.

Australia is pleased that the debt moratorium will be in addition to the direct assistance already committed by Paris Club members. Australia remains of the view that direct, targeted assistance is the best option for these countries.

The Paris Club has agreed to defer payments of principal and interest on Official Development Assistance (ODA) loans and, depending on the country, certain categories of sovereign non-ODA loans. The deferred payments will be repaid from 2006 to 2009.

The Paris Club agreement will provide affected countries with additional breathing space in their national budgets to continue their work on reconstruction .

Media inquiries: Mr Downer's office 02 6277 7500, Mr Vaile's office 02 6277 7420