The economic development of the least developed countries of sub-Sahara Africa is seriously hampered by the problem of outstanding foreign debt, presenting a problem that cannot be ignored by the international community. Japan has provided active support for debt rescheduling and grant aid for debt relief. *23
   In light of the decision taken at the Cologne Summit in June 1999 *24, Japan will cooperate with other donor countries and international organizations to provide assistance for the resolution of the debt problem so that heavily indebted poor countries (HIPCs) and other low-income countries may achieve long-term economic self-reliance.

In light of the above, Japan will provide the following forms of support.

-- While emphasizing the efforts of debtor countries to repay their debts, Japan will extend substantial debt relief through rescheduling and grants-in-aid to cover repayments based on the international framework.

-- Efforts will be made to allocate funds freed through debt relief to development goals, such as the alleviation of poverty; the provision of education, health, medical, and other social investments; and the creation of employment opportunities.

-- As a rule, financial cooperation after debt relief will take the form of grants, as the provision of new loans is unlikely after debt relief.

-- Japan will actively undertake technical cooperation (human resources development and intellectual support) to enhance debt-management capacities and facilitate appropriate macroeconomic management.

-- Henceforth, Japan will exercise greater caution in the provision of ODA loans and will pay greater attention to the developmental stage and debt-servicing capabilities of recipient countries, while taking into careful consideration the development plans of the developing countries and Japan's own ODA policies.