ISLAMABAD, Aug 13: Pakistan signed an agreement on consolidation of debt with Finnvera Plc Finland here on Tuesday.

Under the agreement, Pakistan’s debt amounting to $6.122m as of Nov 30, 2001, has been rescheduled.

The amount is to be paid in 23 years including five-year grace period at the interest rate of six month Libor for US dollars plus 0.55 per cent per annum.

This was the first agreement on rescheduling arrangement signed with Finnvera Plc Finland under the Paris Club Agreed Minute of December 13, 2001, said an official announcement.

It was expected that similar agreements with Belgium, Canada, Netherlands and United States of America would be signed later this month.

Following the Paris Club Agreed Minute of December 13, 2001, negotiations were held between Islamabad and Finnvera Plc Finland acting on behalf of the State Guarantee Fund on the consolidation and rescheduling of debt owned by the former to the latter.