Canada gives African island a break (Madagascar)

[bemildred]

Ottawa - Canada said on Monday that it was formally cancelling Madagascar's Canadian debt, worth $17-million, in line with a move announced last year by the Paris Club of Creditor nations.

Finance Minister Ralph Goodale said African nations which improved governance should be allowed "the opportunity to invest in their citizens, rather than be compelled to divert their financial resources to interest payments".


IOL

[freetheworkers]

1. Forgiveness of debt

That's a good model for more Western nations. Much of this debt was incurred for the personal consumption of rulers and for "capital flight", i.e. secreting money in Swiss bank accounts. Thus, virtually all debt owed by African, Asian and Latin American nations should be foregiven.

[DulceDecorum]

2. Protection money

is the name of that game.