Debtor Nations Freed of Burdens

5-6-12　LONDON　—　Building　on　an　accord　between　Britain　and　the　United　States,　finance　ministers　of　the　world's　wealthiest　nations　agreed　Saturday　to　wipe　out　$40　billion　in　debt　owed　by　18　of　the　world's　poorest　countries　as　part　of　a　major　assault　on　global　poverty.

The　decision　by　the　Group　of　8,　the　world's　leading　industrial　nations　and　Russia,　fulfilled　a　decades-old　dream　of　anti-poverty　activists,　who　have　argued　that　payments　on　old　loans　drain　the　limited　resources　of　the　world's　poorest　nations,　most　of　which　are　in　Africa,　keeping　millions　of　people　mired　in　poverty.

British　Chancellor　of　the　Exchequer　Gordon　Brown,　the　major　force　in　putting　together　the　debt-relief　package,　announced　that　the　poor　nations'　debt　to　the　World　Bank,　the　African　Development　Bank　and　the　International　Monetary　Fund　would　be　wiped　out.　Richer　countries　have　agreed　to　replenish　the　reserves　of　the　funding　organizations　as　necessary.

Brown　said　the　debtor　nations　would　be　relieved　of　$15.6　billion　in　payments　on　the　$40　billion　over　the　next　10　years,　and　the　savings　would　be　funneled　to　urgent　needs　in　health,　education　and　infrastructure　development.

The　decision　qualifies　14　countries　in　Africa　and　four　in　Latin　America　for　immediate　debt　forgiveness.　An　additional　20　countries　could　qualify　over　the　next　two　years.　Brown　said　the　total　size　of　the　debt　relief　package　could　eventually　reach　$55　billion,　believed　to　be　the　largest　such　initiative　in　history.

U.S.　Treasury　Secretary　John　W.　Snow,　who　was　in　London　for　the　finance　ministers'　meeting　at　a　conference　center　near　Westminster　Abbey,　hailed　it　as　"an　achievement　of　historic　proportions."

Although　some　African　countries　that　will　not　immediately　benefit　questioned　the　value　of　the　agreement,　a　spokesman　for　South　African　President　Thabo　Mbeki　declared　the　agreement　"good　news"　for　the　continent.

"We　are　really　encouraged　by　this　decision　and　want　to　thank　the　British　government　and　all　the　countries　involved　in　this　agreement,"　said　the　spokesman,　Bhelo　Khumalo.　"It　will　go　a　long　way　to　enriching　the　African　continent."

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