According to a press release, issued by the Paris Club,  representatives of creditor countries met on 24 January 2008 and agreed to recommend to their governments a reduction of the stock of debt of the Republic of The Gambia. This decision constitues the culmination of the country’s efforts in order to meet the economic conditions,  as it has reached its Completion Point under the enhanced initiative for the Heavily Indebted Poor Countries (enhanced HIPC Initiative) in December 2007.

The press release further oulined that the creditor countries ‘‘welcomed the Republic of The Gambia's determination to implement a comprehensive poverty reduction strategy and an ambitious economic programme providing the basis for sustainable economic growth’’.

Considering that the stock of debt due to Paris Club creditors by The Gambia was estimated to be around US$ 40 million in nominal value as of 1st December 2007, they decided to cancel US$ 11.64 million. This initiative is meant to help restore the country’s debt sustainability.

‘‘The Republic of The Gambia is committed to allocate the resources freed by this debt treatment to priority areas identified in the country’s poverty reduction strategy (…) also to seek comparable treatment from all their other external creditors.’’

It could be recalled that members of the Paris Club which participated in the reorganization of the debt of The Gambia were representatives of the governments of Austria, Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway and the United Kingdom.

The delegation of the Republic of The Gambia was headed by M. Musa Gibril Bala Gaye, Secretary of State for Finance and Economic Affairs. The meeting was chaired by Mr Julien Renki, Vice-President of the Paris Club, Deputy Assistant Secretary at the Treasury and Economic Policy Department of the French Ministry of Economy, Finance and Employment.