Poorest Nations to Get Debt Cancellation

Japan boosted its debt-relief program to 100% of the money owed to it by the world’s poorest nations, the Foreign Ministry said. The announcement, just months before Japan is scheduled to play host to a Group of 8 summit of industrialized countries in July, affects loans that aren’t part of Japan’s Official Development Assistance program. Japan has already forgiven 100% of its Official Development Assistance loans. The affected loans were for trade insurance or were extended by public entities such as export-import banks. A Foreign Ministry official said the decision would probably affect loans to about 30 countries, totaling about $943 million. Tokyo also pledged further contributions to the World Bank debt-relief fund, bringing its contribution to $200 million, government officials said.