Spain writes off Bolivia debt

Spain writes off Bolivia debt
9/15/2009, 8:44 a.m. EDT
JORGE SAINZ
The Associated Press

(AP) — MADRID - Spain on Tuesday agreed to write off Bolivian debt of ?60 million ($87 million) to help the impoverished South American country's development.

Prime Minister Jose Luis Rodriguez Zapatero said 60 percent of the debt would be forgiven outright, while 40 percent would go toward funding education projects.

"It's a gesture by Spain toward Bolivia's development, toward young people who have no schools or have difficulties finding decent schooling, Bolivians who have no access to water or health care services," Zapatero said during a press conference with visiting Bolivian President Evo Morales.

During their talks, the two also discussed the possibility of increased Spanish investment in Bolivia's energy and mineral sector.

Bolivia plans to nationalize its electricity sector and this is likely to affect some Spanish companies.

Zapatero said Spain was not asking for anything in return for the debt pardon, but he immediately went on to say he trusted Spanish companies would be able to operate with full guarantees in Bolivia.

Morales has met King Juan Carlos as well as parliamentary group leaders since arriving Sunday. He also met with the head of Spain's energy giant Repsol.

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