Hon. Tuilaepa Fatialofa Lupesoliai Sailele Malielegaoi, Prime Minister and Minister of
Foreign Affairs and Trade and H.E. Mr. TERASAWA Genichi, Ambassador Extraordinary
and Plenipotentiary of Japan to Samoa signed today (3 March) the Exchange of Notes on the
debt relief measure in the form of deferral for Samoa.
This debt relief measure is provided on the basis of the conclusions reached at the Paris Club
on 27 August 2020 given the Debt Service Suspension Initiative (DSSI) concluded by the
G20 Finance Ministers and Central Bank Governors Meeting on 15 April 2020 to address the
COVID-19 crisis.
Under the deferral measure, the principal and contractual interest between 1 March 2020 and
31 December 2020, among the debts payable under the loan agreements before 24 March
2020, have been deferred for settlement over the 4 years with a 1-year grace period.
The Debt Service Suspension Initiative provides a time bound suspension of debt service
payments for countries that require forbearance and fiscal space to support ongoing national
recovery efforts to overcome the COVID 19 global crisis and its intertwined health, social
and economic impacts.
Samoa as a developing country and a World Bank/IDA assistance recipient is eligible to
benefit from the assistance. Japan is one of the development partners that offers highly
concessional loan financing to Samoa with interest rate of 0.45% per annum and a maturity
period of 30 years including a 10-year grace period.
The signing of the Exchange of Notes will contribute directly to Samoa’s ongoing economic
recovery efforts as well as to improve debt transparency and debt management amidst the
present economic challenges posed by COVID-19.