Norway wipes out almost half of Pakistan's debt to Norway

[mAd_ScIeNtIsT]

Thank you Norway

This is actually a pretty effective form of aid. It’s debt relief in a way that directly helps the Earthquake survivors, since the condition of the debt relief is that Pakistan must spend $20 million on reconstruction in Kashmir.

http://www.dawn.com/2006/01/24/top6.htm

OSLO, Jan 23: Norway agreed to cancel $20 million of Pakistan’s debts on Monday to help reconstruction after the Oct 8 quake in a deal announced as President Gen Pervez Musharraf arrived in Oslo for a two-day visit.

Norway would cancel $20 million of Pakistan’s $45 million debt to Oslo in a swap deal under which Pakistan would spend a corresponding amount in rupees on reconstruction after the earthquake, the Foreign Ministry said in statement.

On arrival at Oslo airport from Dubai, President Musharraf expressed ‘extreme gratitude’ for Norway’s financial and medical aid after the earthquake.

He will meet Norwegian leaders and give a speech at the Nobel Institute on Tuesday before leaving for Switzerland.

Briefly talking to journalists after his arrival at the Gardermoen international airport, the president said his visit aimed at enhancing bilateral relations with Norway, specially in trade and economic field, and exchanging views on issues of international concern.

The president’s visit follows a trip by Norwegian Prime Minister Jens Stoltenberg to Pakistan on December 5-7, the first ever high-level visit by either side.

President Musharraf’s visit would provide him with an opportunity to highlight the importance of boosting ties between Pakistan and Norway.

On Tuesday, President Musharraf will call on the King Harald V and hold talks with Prime Minister Jens Stoltenberg on bilateral and international issues.

In his meetings with the Norwegian leadership, President Musharraf will express Pakistan’s gratitude for their country’s swift response to October 8 decimating earthquake.—Agencies

[Captain1]

Re: Norway wipes out almost half of Pakistan's debt to Norway

I think the more effective way is for these countries to coordinate with an NGO in rebuilding operations, something like 'adopt-a-village' type schemes rather than forgiving loans and getting 'govt' promise to spend similar amount on reconstruction.

[Haris]

Re: Norway wipes out almost half of Pakistan's debt to Norway

Captain, lots of individuals and organizations at various levels are already involved in collaborating with NGOs and the efforts are going in the right direction so far.
What Norway has done was and is extremely required, these well off foreign countries need to and should support our government the way Norway has. some of the bigger countries should follow the example asap. right now the government needs all support and aid too so it could carry out the rehab projects as best as possible.

[Captain1]

Re: Norway wipes out almost half of Pakistan's debt to Norway

^ Haris, when govt loans are written off, it only means our govt gets to eat a bigger chunk of bucks. Did you notice a big defense contract right after quake? Do you think there were no kick-backs in there? The greed in our govt has no ends.

[fayax]

Re: Norway wipes out almost half of Pakistan's debt to Norway

SO lets bring this hypothesis to a smaller scale. If person A owed me 45 dollars and his house fell down. Now person A is hungry and homeless. At this time if I say that the person A now owes me only $20 dollars, how does this help that person. I am sure person A would rather me give him/her another $20 for survival and allow him/her to pay over alonger period of time.

[mAd_ScIeNtIsT]

Re: Norway wipes out almost half of Pakistan’s debt to Norway

@fayax

SO lets bring this hypothesis to a smaller scale. If person A owed me 45 dollars and his house fell down. Now person A is hungry and homeless. At this time if I say that the person A now owes me only $20 dollars, how does this help that person. I am sure person A would rather me give him/her another $20 for survival and allow him/her to pay over alonger period of time.

You missed a vital element. Person A owes you 45 dollars but has lost his home. before you take action, he’s in the unfortunate position of owing you 45 dollars AND having to find money to rebuild his home.

What you’ve now told Person A is that you’ll only ask him to pay back 25 dollars, to allow him 20 more dollars to spend on rebuilding his home.

[fayax]

Re: Norway wipes out almost half of Pakistan's debt to Norway

@mAd_ScIeNtIsT

You missed a vital element. Person A owes you 45 dollars but has lost his home. before you take action, he's in the unfortunate position of owing you 45 dollars AND having to find money to rebuild his home.

What you've now told Person A is that you'll only ask him to pay back 25 dollars, to allow him 20 more dollars to spend on rebuilding his home.

Yes, that is true, but not only did he NOT have $45 to pay me back , he needed about a $100 to rebuild the home.

[Haris]

Re: Norway wipes out almost half of Pakistan's debt to Norway

of course while additional aid specially for earthquake rehab is much needed, this form of leniency is also very practical and worthwile. and like Maddy said above, the money meant to repay debt can thus be used for rebuilding projects.

And as far as corruption by the govt in rehab projects and funds is concerned, in such a case i wouldnt want to invest any trust in any of the country's NGOs either-it often seems their financial functionings are beyond any audit or control.