Norway first in the world to audit developing country debt

A new report of developing countries’ debt owed to Norway, was presented in Oslo yesterday. “Norway is the first country in the world to have carried out an independent audit of debt agreements. We are doing this to make sure that we are living up to our responsibility as a lender to developing countries,” said Minister of International Development Heikki Eidsvoll Holmås.

 

Unmanageable debt burdens are one of the fundamental causes of poverty in developing countries. While the international community gives USD 141 billion in aid to developing countries annually, the developing countries pay back USD 464 billion each year to their creditors. Many of the debt agreements were entered into when economic, political and social conditions were uncertain.

“Although the solvency of many countries, such as Brazil, is improving, the debt burden is hampering development in some poor countries. These countries are having difficulty servicing old debt agreements made on unfavourable terms. We now want to address this,” said Mr Holmås, who referred to the first creditor-initiated debt audit as a milestone in Norwegian and international debt policy.

The audit report has been carried out by Deloitte under commission from the Ministry of Foreign Affairs. It covers 34 debt agreements with seven countries: Egypt, Indonesia, Myanmar, Pakistan, Somalia, Sudan and Zimbabwe. Most of the agreements are between 20 and 30 years old. The debts have a total value of almost NOK 1 billion, and when interest on overdue payments is added to this, the total amount is almost four times as much. The report shows that the agreements were largely concluded in accordance with the previous rules and regulations, and partially in accordance with the current rules and the UNCTAD principles. However, it also identifies weaknesses in some of the agreements, which the Government will examine more closely.

“We are once again demonstrating that we are leading the way when it comes to international debt policy, which was a goal for the current coalition Government. We have cancelled almost NOK 7 billion in debts owed to Norway by developing countries over the last eight years, and this has helped the countries to release national resources for poverty reduction. I am pleased that Norway is setting new standards for using the UNCTAD Principles on Promoting Responsible Sovereign Lending and Borrowing, and I urge other countries to follow suit,” said Mr Holmås.

Link: Read the report.

 

Related news

Latest news

Nemko Publishes Short Notes on China

Nemko has published a some updates related to China and new initiatives regarding standards, product safety and cyber security. 

Technip and FMC Technologies Shareholders Approve Business Combination

FMC Technologies Inc. and Technip S.A. have announced that the companies' respective shareholders have voted to approve the proposed business combination of Technip and FMC Technologies.

Nordsild

The fishing vessel "North Herring" belonging to Norsild Havfiske AS with factory from Melbu Systems was in August ready for cod fishing.

One of the Strongest Earthquakes in New Zealand in 200 years

NORSAR reports that New Zealand’s South Island was struck by one of the strongest earthquakes the country has observed in the past 200 years November 13, 2016.

Jotne Subsea Gas Lift for Balder Field

In April 2015, Jotne E&P was awarded an EPC contract to build the subsea gas lift manifold for Exxon Mobil on the Balder Field.

Jotne Awarded Contract for Subsea Protection Structure

In January 2016, Jotne E&P was awarded a contract for the delivery of a subsea protection structure and GRP cover for a Xmas tree at Balder field. The contract was awarded by Ocean Installer.

UiB and CMR in high-tech collaboration

Students from UiB last month joined an experiment with an ultra-high-speed camera. This was a part of the troubleshooting of the Field Kelvin Probe currently under development.

Hatteland Display at International Workboat Show 2016

Hatteland Display are highlighting its diverse portfolio of maritime displays and panel computers on its booth (#1658) at the International Workboat Show 2016 (IWBS 2016) this week.

Servogear Announces Upcoming Events

Servogear announces a busy end of November, beginning of December. They will be participating at important international exhibitions.