World Bank, International Monetary Fund grant $22 billion in debt relief
Regional, Economics, 12/23/2000

The World Bank and the International Monetary Fund (IMF) have granted $22 billion in debt relief to over 20 of the world's poorest countries, according to a joint statement issued Friday by the two organizations.

The agencies approved the disbursal of some $20 billion in debt relief for 22 countries -- four in Latin America and 18 in Africa - in an initiative for Heavily Indebted Poor Countries (HIPC). Previously, Uganda and Mozambique had received debt relief under the same program, according to the statement issued by World Bank chief James D. Wolfensohn and the head of IMF, Horst Köhler.

"The international community must play its full part to improve the lot of poor countries, for there cannot be a good future for the rich nations if the poor nations do not share prosperity," the agency chiefs said, warning that a combination of improved policies and debt relief would not be enough in most cases. "We need to make sure that the HIPC initiative is supported by all creditors, including official bilateral and commercial creditors that have yet to provide the required debt relief."

The World Bank/IMF debt relief initiative was first launched in 1996, with the goal of reducing the debt of poor countries to sustainable levels as a way to renew their prospects for growth and to free up resources for vital social needs. "Last year, we committed to strengthen that initiative to provide faster, deeper, and broader debt relief," the statement said. "When progress still seemed too slow, we pledged to make every effort to permit at least 20 countries to benefit from debt relief by the end of this year. This goal has been reached and even exceeded."

The heads of the two agencies also pledged to continue working to bring debt relief to the remaining heavily indebted poor countries which have yet to qualify for the HIPC initiative. "Their already difficult situations are, in many cases, compounded by civil conflict or its immediate aftermath," the joint statement said. "An end to these conflicts is an essential first step for these countries to rebuild economically and truly benefit from debt relief."

Previous Stories:
  UAE's increased investments volume in the Arab states   (12/22/2000)
  US $ 750 million at al-Aqsa and Jerusalem Fund   (12/21/2000)
  Arab investment company posts gains   (12/18/2000)
  Oualalou calls Europe to invest more in Morocco   (10/23/2000)
  China writes off $ 1.2 bln in African debt   (10/11/2000)
  Arab states debt stands at $ 375 bln   (10/10/2000)

Please add a link on your webiste pointing to ArabicNews.com and bookmark ArabicNews.com & subscribe to our daily email news bulletin.

Search