Norway and Pakistan signed a declaration of intent concerning a debt-for-development swap during President Pervez Musharraf’s visit today.

The declaration of intent will be signed by State Secretary Anne Stenshammer of the Norwegian Ministry of Foreign Affairs and Minister of State for Economic Affairs Hina Rabbani Khar at 17.30 on Tuesday 24 January at the Government Guest House in Parkveien in Oslo.

The purpose is to cancel USD 20 million (approximately NOK 134 million) of Pakistan’s debt to Norway, which amounts to approximately USD 45 million (about NOK 30O million). In exchange Pakistan will spend a corresponding amount in Pakistani rupees on reconstruction after the earthquake of 2005.

The funds will be channelled through the Asian Development Bank’s Pakistan Earthquake Fund, which already totals USD 300 million. The bank is part of a three-way cooperation on rehabilitation and reconstruction.

This is the second multilaterally coordinated debt swap Norway has engaged in. Norway entered into the first debt swap of this kind with Vietnam and the International Fund for Agricultural Development in summer 2005.

Press contact: Press Officer Trine Broe-Andersen, mobile + 47 47 64 74 60