The Paris Club, an international group of creditor countries, cancelled 254 million dollars of Liberia's debt and rescheduled a further 789 million dollars, according to a statement from the group Thursday night. ( dpa )
Under the deal, Liberia will not have to repay any of its debt before December 31, 2010, given its "very limited capacity of payment," the statement said.
The Liberian government in turn has committed itself to investing its new resources in poverty reduction programmes and to reaching a similar deal with the London Club of creditors.
Liberia was indebted to the Paris Club by 1.5 billion dollars.