The Norwegian government announced on Monday that Norway has cancelled Gambia's remaining debt to Norway, according to reports reaching here from Oslo.
Gambia's remaining debt to Norway amounts to about 2.6 million U.S. dollars, the Norwegian Foreign Ministry said in a statement.
In accordance with the Norwegian Debt Relief Strategy, the debt was cancelled without deducting any funds from the development assistance budget and the cancellation will therefore not affect the development assistance provided to any poor country, it added.
The debt cancellation agreement with Gambia is part of the Heavily Indebted Poor Countries (HIPC) Debt Initiative.
The Norwegian government committed itself to canceling the rest of Gambia's outstanding debt to Norway, according to a multilateral framework agreement by the Paris Club in January 2008.