CAMEROON: SIGNATURE OF BILATERAL DEBT FORGIVENESS

UNCLAS YAOUNDE 000062 SIPDIS SIPDIS STATE FOR AF/C AND AF/EPS PARIS AND LONDON FOR AFRICA ACTION OFFICERS EUCOM FOR J5-A AFRICA DIVISION AND POLAD YATES TREASURY FOR BOYE E.O. 12958: N/A TAGS: EAID PREL PGOV ETRD ECON CM SUBJECT: CAMEROON: SIGNATURE OF BILATERAL DEBT FORGIVENESS AGREEMENT REF: 06 STATE 199550 ¶1. (U) On January 17, the Ambassador and Minister of Economy and Finance Polycarpe Abah Abah signed an agreement forgiving Cameroon's official bilateral debt to the United States. The debt forgiveness stems from Cameroon's attainment of the Heavily Indebted Poor Countries (HIPC) Initiative Completion Point in April 2006. The agreement forgave USD 30,203.800. Abah Abah's remarks, which were televised, expressed effuse thanks to the USG for our suport of Cameroon on the road to the completion point. The Ambassador, for his part, praised the government of Cameroon (GRC) for its hard work in achieving the HIPC Completion Point, and expressed the hope that 2007 would bring additional reforms improving the investment climate and thus unleashing the full force of the private sector to create jobs and wealth. ¶2. (U) According to Abah Abah, the rules set by the Paris Club required all partner countries to finalize debt forgiveness arrangements with Cameroon by the end of 2006. Abah Abah indicated, however, that he was seeking an extension from the Paris Club giving the GRC until June 2007 to finalize those agreements. He mentioned that while the principal papers had been signed, he was still finalizing details with four donor nations, including France and Germany. MARQUARDT