Wednesday, January 19

That's 11 Zeroes!

Prompted by: (a) the realization that Zambia's outstanding debts would continue for a long time and, (b) acquiring foreign currency to repay the debts continues to be a hindrance to Zambia's development, today Japan cancelled 3.4 trillion of the 4 trillion Kwacha owed it. According to The Times of Zambia, much of the remaining K600 billion will be cancelled before March 31.

Wow! K3.4 trillion is just under $750 million.

Japan owns more of Zambia's debt than any other nation (of course, the IDA and the IMF own more). The US ranks fourth. Zambia still owes more than $5.5 billion to creditors, which is about what the US will spend in Iraq this week.