Brazil finally writes off Tanzania debt

Summary

  • The debt was due to a loan granted in 1979 for the construction of the Morogoro-Dodoma road, a statement issued by the Embassy of Tanzania to Brazil stated yesterday.

Dar es Salaam. There is a reason to smile for Tanzania after the Brazilian government wrote off a $203 million (Sh445 billion) debt.

The debt was due to a loan granted in 1979 for the construction of the Morogoro-Dodoma road, a statement issued by the Embassy of Tanzania to Brazil stated yesterday.

Tanzania’s Ambassador to Brazil Dr Emmanuel Nchimbi and an official from the Brazilian National Treasury, Dr Sonia Portella Nunes signed the agreement on behalf of their respective governments.

Dr Nchimbi thanked the Brazilian Government for writing off the long-standing debt, saying the move would be helpful as the fifth phase government under President John Magufuli strives to revamp the economy.

The ambassador also assured Brazil of Tanzania’s readiness to strengthen trade and economic cooperation.

For his part, Mr Guilheme Laux, Undersecretary of Credit and Guarantee from Brazil’s Ministry of Finance noted that the decision would now enable Brazilian companies to borrow money from Brazilian Banks for implementing development projects in Tanzania.

He also pointed out that the government of Tanzania is now allowed to initiate discussion with its Brazilian counterpart over establishment of new development projects.