Home | News    Tuesday 27 September 2005

World Bank backs debt cancellation scheme


Sept 26, 2005 (WASHINGTON) — The World Bank’s policymaking committee on Sunday approved a plan to accord multilateral debt cancellation to some of the world’s poorest countries, committee chairman and South African finance minister Trevor Manuel said here.

JPEG - 5.8 kb
World Bank

The action follows a similar move on Saturday by the International Monetary Fund.

"The (debt) agreement now carries the full weight of support of all member states of the IMF and the World Bank and sets the basis for the next moment. These agreements are premised firstly on 100 percent debt relief," Manuel said.

The decisions of policymakers from the World Bank and IMF now go to the executive boards of the two institutions, where rejection is considered highly unlikely.

World Bank president Paul Wolfowitz said he would "move swiftly" to get the issue before the board, "a process that can be completed within weeks."

In an initial phase the project would provide debt cancellation worth about 40 bln usd to 18 of the world’s most impoverished nations, all but four of them in Africa.

About 70 pct of the debt is due the World Bank, with the remainder owed the IMF and the African Development Bank.

In the face of concern that cancelling the repayments would cripple the World Bank’s ability to continue lending to poor countries, the Group of Eight industrialized nations — which drafted the proposal — on Friday issued a written pledge to cover the full cost of the scheme.

The 18 countries targeted in an initial phase have met specific economic and structural conditions mandated by the Bank and the Fund in exchange for debt relief.

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

A further 20 countries could also become eligible, which would take the total value of the debt cancellation to 55 bln usd dollars, according to British Chancellor of the Exchequer Gordon Brown.

Speaking here Sunday, Canadian Finance Minister Ralph Goodale said that "with their debts gone, these countries will be able to redirect more of their precious financial resources to productive investments in better health care, education, social development and economic growth for their people."

Oxfam International has estimated that poor countries spend 100 mln usd a day on debt repayments.

Debt relief campaigners on Saturday gave a cautious welcome to the project.


Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article

The following ads are provided by Google. SudanTribune has no authority on it.

Sudan Tribune

Promote your Page too

Latest Comments & Analysis

Problems facing South Sudan must be told 2019-08-25 22:50:20 By Dak Buoth The issues pertaining to our country have always been emotive for they are things to do with war. Over the last seven or so years, South Sudan has dominated the international (...)

Sudan’s Constitutional Declaration was reduced to absurdity 2019-08-13 20:31:25 By Mahmoud A. Suleiman After paying tributes to the martyrs and hoping healing for wounded and offer sincere greetings to the rebellious Sudanese people who are inevitably victorious, having (...)

Options and opportunities for SPLM-N al-Hilu to join Sudan’s transition 2019-08-13 20:06:06 By Ibrahim B. Musa Despite the initial signing of the political on July, 17th, 2019 and constitutional declaration on August 4th, 2019, as well as the previous exhausting efforts made in (...)


Latest Press Releases

Sudanese lawyers and Human rights defenders back calls for civil rule 2019-04-26 10:22:06 Press statement by 55 Sudanese lawyers and Human rights defenders on Sudan Sit-in and Peaceful Protest Khartoum -24/04/2019 We, the undersigned (55) Sudanese lawyers and human rights defenders, (...)

South Sudan’s Lafon youth condemn killings of civilians by Pari community 2019-04-03 21:54:29 Press Statement on the Fighting between Pari/ Pacidi and Lotuko/Lokiri on 24/3/2019 Release by The Lafon County Youth Union: We, the Lafon County Youth Union hereby condemn the atrocities and (...)

Joseph Malwal Dong joined the SPLM/A -IO 2019-04-02 08:35:02 SPLM/A (IO) Press Release 1/4/2019 On Hon. Joseph Malwal Dong Joined the SPLM/A (IO) The leadership of the SPLM/A (IO) would like to seize this precious opportunity to announce to members and (...)


Copyright © 2003-2019 SudanTribune - All rights reserved.