Portugal’s Minister of State and Foreign Affairs, Paulo Rangel, stated on Tuesday, 25 November, that more than restructuring or forgiveness, the conversion of African debt owed to European countries “has real prospects for moving forward.” His remarks were made during the final assessment of the summit that brought together leaders of the African Union (AU) and the European Union (EU) in Luanda, Angola.
According to the Portuguese official, debt conversion has increasingly proven to be an efficient mechanism for all parties involved, offering benefits and more flexible forms of settlement.
“More than simple restructuring or requests for debt forgiveness, the viable solution with real potential for Africa is debt conversion,” he said, noting that this was “a mechanism that was highly praised here.”
Rangel continued by stating that “many countries are open to this instrument because they understand that, since forgiveness or restructuring may not be possible, conversion emerges as a solution. It is easier for creditor countries and, at the same time, brings significant added value to debtor countries,” he explained.
“We have a programme in Cape Verde,” he revealed, “which has been very successful. It is linked to renewable energy and results from converting debt into an instrument for environmental modernisation and energy autonomy,” he added.
The AU–EU Summit concluded on Tuesday (25 November), under the theme “promoting peace and prosperity through effective multilateralism,” and brought together around 80 delegations.
Source: Lusa
