Debt Relief

IMF policymakers fail to agree on debt relief

ABS-CBN Interactive

October 4, 2004
The International Monetary Fund’s top policymaking group failed to close divisions over debt relief for the world’s poorest countries at a meeting last weekend of the International Monetary and Financial Committee (IMFC). British Chancellor of the Exchequer, Gordon Brown, who chairs the committee, said additional funding for the next stage of debt relief had to be funded by some “new mechanism and not by some form of substitution.” Brown has proposed a revaluation of the IMF’s massive gold stocks, one of the biggest bullion caches in the world, as a way of raising additional cash for debt relief. His proposal received a mixed reaction from other finance ministers. Donald Kaberuka, Rwanda’s Minister of Finance and Economic Planning, told a press briefing that developing countries were wary of differing Group of Seven positions on debt relief. The IMFC extended the Heavily Indebted Poor Countries (HIPC) initiative, the current mechanism for dealing with debt relief, managed by the IMF and World Bank, by two years to 2006.¬†

Categories: Debt Relief, Odious Debts

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