Italy signs a law to reduce HIPCs debt

The minister of Treasure Vincenzo Visco has signed a law to reduce the external debt of the highly indebted poor countries.

Speaking in Rome yesterday, Mr Visco said that “this is an important step toward the realization of the international agreements sustaining the poorest countries. Not only has Italy got the most advanced law in this regard, but it is also doing something.” The Italian government has set aside £3-4bn to finance debt reduction, and pledged an immediate reduction of about £1.3 billion of HIPC countries' debt to Italy.

The Italian law stipulates that the terms and conditions of the debt relief will be negotiated between Italy and the HIPC countries through bilateral agreements. The new law stipulates also new conditionalities around human right, war and poverty reduction.