How would you feel if all your debts were cancelled? For poor countries, foreign debt is a big problem and often they cannot develop because of this. So, I felt very happy that Japan has cancelled $23.91 million for Nepal. Great news!
Japan has exempted Nepal from debt worth $23.91 million. The debt was exempted as per the Letter of Exchange signed in 2004. I am quoting from the report published in People’s Daily Online:
"The government of Japan has agreed to cancel the outstanding principal and interest owed by Nepal to Japan that have fallen due on or after April 1, 2003 for the loans extended up to 1987," the radio quoted a press statement released by Finance Ministry as saying.”
According to the report, the loan was extended for the construction of Hydropower projects and cement plant. The Nepalese government has expressed its gratitude to Japan for canceling the debts and for its constant support for Nepal’s socio economic development.
Nepal’s new government is already in enough trouble running the country. King Gyanendra and his followers embezzled and spent huge amount of tax payers’ money for their own purpose. Moreover, the political instability that continued for a long time was a big blow to Nepal’s economy. Nepal’s major foreign currency earning sector, tourism, is not in a very good condition. The Japanese government has shown great generosity by canceling this debt on Nepal.
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