G8 strike historic deal to scrap poor nations' debt

[boybi]

from Inq7.net:

G8 strike historic deal to scrap poor nations' debt

LONDON – (UPDATE) Group of Eight finance ministers agreed Saturday on a deal for immediate 100 percent multilateral debt relief totaling 40 billion dollars for 18 of the world's poorest countries, British Chancellor of the Exchequer Gordon Brown announced.

"Can I say that today...we are presenting the most comprehensive statement that finance ministers have ever made on the issues of debt, development, health, and poverty," he said at the end of a two-day meeting ahead of next month's G8 summit in Scotland.

"I can confirm that the G8 finance ministers have agreed a 100 percent debt cancellation for the Heavily Indebted Poor Countries (HIPC)," Brown said.

"The 40 billion of debts owed by the poorest countries will be written off immediately."

The G8, comprising Britain, Canada, France, Germany, Italy, Japan, Russia and the United States, agreed to immediately write off 40 billion dollars (33 billion euros) of debt owed by 18 countries to the World Bank, the International Monetary Fund (IMF), and the African Development Bank.

The 18 nations are Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tanzania, Uganda, and Zambia.

They are the first to qualify for eligibility for a debt relief joint initiative backed by the three financial institutions.

The HIPC initiative offers debt relief to the world's most impoverished nations that agree to undertake economic reform.

Britain was hosting the finance meet and July's summit in its role as chair of the G8 this year.

Earlier, South African former president Nelson Mandela said the need for a deal was "urgent" in a letter sent to the G8 members -- Britain, Canada, France, Germany, Italy, Japan, Russia, and the United States.



"I hope you will do everything within your power to ensure your meetings... will finally conclude in a truly historic agreement for 100 percent debt cancellation," he wrote.

Earlier, Brown said the deal is unique because "so much of [the debt] would be written off almost immediately, more than 40 billion dollars within a few weeks of the agreement, and that would give these countries the chance to move the money directly into health and education."

John Nagenda, spokesman for Ugandan President Yoweri Museveni, was skeptical about the impact of any deal.

"How much is in it for us?" he said on BBC radio Saturday.

"I'm happy to believe that this international debt is something that is killing us small countries and that sooner or later this will be recognized and the debt removed entirely," he said.

"On the one hand of course, we are grateful this is being done but we do get these things said all the time and, number one, sometimes the money doesn't turn up and if it does turn up it is late."

Earlier this year, Brown launched a "Marshall Plan" for Africa aimed at wiping out multilateral debt for the poorest nations and at doubling annual development aid to 100 billion dollars by 2015.

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sana sinama pinas para mawala narin utang natin.

[GlennSter]

asa pa..herher

[mazdamazda]

The 18 nations are Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tanzania, Uganda, and Zambia.

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sana sinama pinas para mawala narin utang natin.

pre...

compared to those countries, the Philippines is DOING SO MUCH BETTER OFF. that's why to those who continually "complain" about the living conditions here, I suggest that you read about poverty in Africa.

[shadowfax]

pwede yan basta makikinabang taong bayan...

[BlueBimmer]

yes they need it more than we do X 1000!

[ILuvDetailing]

yup to put things in perspective, we're still better off, masyado lang malayo ang gap ng poor at rich, not enough middle class.

[theveed]

In addition, ang utang dito binubulsa... ibang usapan yan...

[empy]

i didn't realize nicaragua was considered one of the 18th poorest countries in the world...i have a lot of friends from there.

[falken]

Hindi tayo masasama diyan, sa bulsa ng mga kurakot napupunta kasi ang mga pinapautang satin.

[kiper]

Good for them..still good for us..!!

Kahit hindi tayo kasama sa pag write-off ng utang. Malaking tulong na sa World Economy yan.

Para makapag-focus na sila sa pag develop ng bansa nila.

Pero sana sa next batch tayo naman..hehe Tapos force retirement lahat ng mga Trapo..tas new election kaagad.