Tuesday, 13 May 2008

ČR to remit most of Cambodia's $3.6m debt

The Prague Daily Monitor

Prague, May 12 (CTK) - The Czech Republic will forgive most of the debt worth $3.6m (Kc58m) to Cambodia which will have to pay a quarter of the amount, the Finance Ministry told CTK today.

The plan for the debt's reduction is part of a memorandum reps of the Czech Republic and Cambodia signed today.

The Czech Republic will use the paid money for development assistance.

Cambodia should pay 23 percent of the debt, that is Kc13m, to the Czech Republic and then the rest will be forgiven.

Both countries also signed an agreement on mutual protection of and support to investments.

At end-2006, the Czech Republic had Kc18.4bn claims on other world countries. The sum does not include special loans subject to the regime of secrecy.

The amount of money foreign countries owe to the Czech Republic has been falling in the long term.

When the independent Czech Republic was established in 1993, foreign countries owed Kc156bn to the Czech Republic, with Cuba being the biggest debtor.

The Finance Ministry had ranked claims on Cambodia as highly risky.

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