African ministers adopt common stand on debt
Regional, Politics, 5/10/1999

African ministers of finance and planning ended a three-day conference here Saturday, with the adoption of a common stand on Africa's foreign debt currently estimated at some 350 billion U.S. dollars.

Panafrican news agency PANA reports that the ministers called for the overhaul of the debt relief initiative for Highly Indebted Poor Countries, HIPC, so that it could provide quick and tangible benefits by reducing the eligibility period required.

The joint ministerial conference, which brought together some 350 participants from 45 countries, including 70 ministers and other policy-makers, and their partners, also considered policy options for socio-economic development in their final decisions.

The theme of the conference was "Challenges of Economic Development in Africa'.

In a statement issued at the end of the conference, the ministers called on the G-7 countries forthcoming summit to cancel debt arising from bilateral aid for the poorest countries.The G-7 summit in June, 1999, in Cologne, Germany, is also called upon to lead the move in debt reduction, "by raising the reduction of all other bilateral debt of the poorest countries by at least 90 percent."

"Debt relief for the poorest countries should not be provided at the expense of Official Development Aid for funding development programmes and projects in these and other countries," the statement said.

It also called for "exceptional debt relief" for post-conflict countries, particularly those with protracted debt arrears.

The ministers recommended that debt relief for such countries should include the possibility of full cancellation of debts.

They noted that a new international climate is prevailing at present for addressing Africa's debt problem.

They said the new realism indicates that "much of the debt is unpayable, that altogether it is a very significant impediment to Africa's orderly growth, and that current debt resolution mechanisms, particularly the HIPC initiative, are far too slow, far too selective in coverage and far too conditioned."

On how to improve Africa's socio-economic ills, the ministers urged member states to pursue strategies to support capital markets for development and policies for poverty reduction.

"While the majority of African states are carrying out economic reforms, and many need to continue the process, they must simultaneously pay major attention to human capital development and to build the requisite institutions and infra- structure," the statement said.

In this regard, the ministers noted that "Africa's economic recovery is fragile and requires major efforts, particularly to expand exports and create an environment that is more conducive to investment." They said that achieving long-term sustainability was linked in turn to "improved standards of living and reduction of poverty."

The ministers also indicated that HIV/AIDS has now become a fundamental factor in Africa's economic and social prospects, "requiring that the challenges of the disease and its impact be part of core planning" in almost all parts of Africa.

"Most fundamentally, it is now appropriate to restore poverty reduction as the focus of our development," the ministers declared.

Previous Stories:
  Floating up Egyptian bonds in world markets   (4/29/1999)
  World bank expresses guarded optimism about Africa's growth   (4/29/1999)
  Morocco's leading group posts $1.6 billion in sales   (4/3/1999)
  Good financial monitoring in Bahrain   (4/1/1999)
  Morocco launches bond issue to reduce debt servicing   (3/23/1999)
  Moroccan government renews will to alleviate debt burden   (1/6/1999)
  Algeria reduces its debts, oil price effects measured   (4/9/1998)

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

Search