The Finance Ministry - Germany grants debt forgiveness to the tune of nearly 16 billion euros.
Here's a paraphrased version of the given story:
Since 2000, Germany has canceled a whopping 52 nations' debts equaling 15.8 billion euros. This revelation was made known by the Federal Ministry of Finance, per a query from AfD MP Stephan Brandner, which is accessible to the German Press Agency. The most substantial debts, believed to be worth around 4.7 billion euros, were allegedly excused for Iraq. Nigeria came in second with 2.4 billion euros, and Cameroon third with 1.4 billion euros. The report indicates that the Ministry sealed individual agreements with each of the 52 countries regarding the forgiveness of debts.
Further, Brandner inquired into the present-day financial standing of Germany in relation to 70 countries and the Palestinian territories. Resulting from his query, Germany owed a combined 12.2 billion euros to these nations and territories as of December 31, 2023. Egypt (1.5 billion euros), India (1.1 billion euros), and Zimbabwe (889 million euros) were indicated as the largest creditors to Germany.
Ministry Explains Rationale Behind Debt Cancellations
"The debt cancellations are implemented with the intent of achieving or sustaining macroeconomic stability in the debtor nations and helping them regain debt sustainability," the ministry's response notes. Moreover, it aspires to aid in the alleviation of poverty in severely indebted poor states.
The Ministry's response states that during this time, the canceled debts encompass unpaid loans and pre-1990 trade credits from German exporters and banks. In such circumstances, Germany opted to cover these companies' losses by issuing Hermes guarantees when deliveries were not honored or repayments were not rendered.
In response, Brandner opined that Germany's promise to forgive debts was highly dubious. "Our crumbling infrastructure demands every last penny (...) all while there are countries that have previously been canceled several times and whose perpetual wish for debt forgiveness prods them to pile on more and more debts."
