Germany Cancels Ethiopian Debt

Germany is to cancel a €67-million ($88.68-million) debt owed by Ethiopia following an agreement signed in Addis Ababa on Monday between Ethiopian Minister of State for Finance and Economic Planning Mulu Ketsela and German Federal Minister of State Kerstin Muller, AFP news agency reported. "By canceling this debt, the German federal government is supporting Ethiopia's economic reform and we expect that funds released by the agreement will be used to fight poverty, a key element of the UN development goals," Muller said after signing the agreement. "If economic growth continues at its current rate, Ethiopia has a good prospect of reaching the goals development goals by 2015," Muller said. "I welcome Ethiopia's investments in education, agriculture and infrastructure, which are laying the foundation for sustainable development and reduction of poverty in the country," Muller further stated. While Berlin cancelled Ethiopia's debt, German President Horst Köhler -- who is currently on a tour of the Horn of Africa -- called on the east African country to strive for a peaceful settlement of its border conflict with neighboring Eritrea.