G8 debt deal under threat at IMF

[Eugene]

http://news.bbc.co.uk/2/hi/business/4686015.stm

Last Updated: Friday, 15 July, 2005, 12:29 GMT 13:29 UK

G8 debt deal under threat at IMF

By Steve Schifferes
BBC News economics reporter

Even before the ink has dried on proposals to relieve poor countries'
debts to international lenders, the deal agreed by the G8 at
Gleneagles is under threat.

A number of European governments are apparently having second
thoughts about proposals for debt relief which formed a key part of
the help world leaders offered to Africa at last week's summit.

The Belgians have apparently proposed changing the terms of the deal
to give lenders more leverage over poor countries than they would
have if they simply wrote off 100% of their debt.

In a document that has been leaked to the activist group Jubilee Debt
Campaign, Belgian official Willy Kierkens is quoted as telling the
IMF executive board that "rather than giving full, irrevocable and
unconditional debt relief... countries would receive grants".

more...

[OKthatsIT]

1. Let's not forget, "I Was An Economic Hitman"

...seriously.

The USA will be needing help soon, with these Bush criminals destroying our economy and selling us off to China. It is criminal what the POOR and MIDDLE CLASS is eft paying off debt created by these mafia types.

[muriel_volestrangler]

2. Th UN Human Rights Commission warned against this 4 years ago

Geneva, 27 Mar 2001 -- The debt relief to poor countries under the Heavily Indebted Poor Country programme should be delinked from the Poverty Reduction Strategy Programme (PRSP) processes of the IMF and the World Bank and debt relief speeded up to eligible indebted countries, an Independent Expert has suggested in a report to the UN Human Rights Commission (HRC).

Highlighting the failure of the HIPC initiative to deliver debt relief so far, and the ‘disconnect’ between the macro-economic policies drawn up by countries to please the IMF and the World Bank, and their poverty reduction strategies, the report (E/CN.4/2001/56) by the Independent Expert, Mr.Fantu Cheru, calls on the creditor countries and institutions to “revisit the whole issue once again”, and among others end the “exclusive role” of the IMF and the World Bank as overseers of the poverty reduction programme, and bring into the process other UN agencies such as UNDP, UNICEF, UNCTAD and ILO.

The SAPs, under the IMF/World Bank guidance began in mid-1980s, and the liberalization of markets they called for resulted in delays in growth. In September 1987, the IMF introduced its Enhanced Structural Adjustment Facility (ESAF), and in November 1999 this was replaced by the Poverty Reduction and Growth Facility (PRGF) which, the expert points out, is merely a financing facility funded by donors to clear up debts owed by HIPC governments to the Fund.

The Independent Expert has called for the abolition of the PRGF, and for a serious dialogue to be undertaken on how to integrate macro-economic policy issues with broader social development goals.

http://www.twnside.org.sg/title/delink.htm

This is basically an attempt to buy the IMF a veto over developing countries' economic policies. Whatever the countries proposed to do, they'd have to get the agreement of the IMF before they could go ahead.

[xchrom]

3. but of course...

what the hell is wrong with people?

see i figure the west is hoping for major, major depopulation of africa -- then they will take africa's resources instead of being paid back on loans.