Japan and Samoa Sign Debt Relief Measures

Japans Ambassador H.E. Mr. Terasawa Genichi during the signing of Japans assistance to a village school project.

APIA, SAMOA – 07 MARCH 2021: Samoa and Japan exchanged notes on the debt relief measure in the form of deferral for Samoa.

This debt relief measure is provided on the basis of the conclusions reached at the Paris Club on 27 August 2020 given the Debt Service Suspension Initiative (DSSI) concluded by the G20 Finance Ministers and Central Bank Governors Meeting on 15 April 2020 to address the COVID-19 crisis.

The notes were signed by Prime Minister, Tuilaepa Lupesoliai Sailele Malielegaoi and Japans Ambassador H.E. Mr. Terasawa Genichi, on 3 March 2021.

Under the deferral measure, the principal and contractual interest between 1 March 2020 and 31 December 2020, among the debts payable under the loan agreements before 24 March 2020, have been deferred for settlement over the 4 years with a 1-year grace period.

The Debt Service Suspension Initiative provides a time bound suspension of debt service payments for countries that require forbearance and fiscal space to support ongoing national recovery efforts to overcome the COVID 19 global crisis and its intertwined health, social and economic impacts.

Samoa as a developing country and a World Bank/IDA assistance recipient is eligible to benefit from the assistance. Japan is one of the development partners that offers highly concessional loan financing to Samoa with interest rate of 0.45% per annum and a maturity period of 30 years including a 10-year grace period.

The signing of the Exchange of Notes will contribute directly to Samoa’s ongoing economic recovery efforts as well as to improve debt transparency and debt management amidst the present economic challenges posed by COVID-19.