[stop-imf] Clinton admin seeks more HIPC money

[Robert Weissman]

>
> WASHINGTON -(Dow Jones)-U.S. Treasury Secretary Lawrence Summers said
> Tuesdaythat President Bill Clinton will ask Congress for significantly
> greater funding for the so-called Heavily-Indebted Poor Countries project.
>
> Attending a HIPC (debt relief) reception at the Capitol building, 
Summers
> announced the administration will make a supplemental request for $210
> million to be added to the $123 million already allocated for debt relief
> in the budget for 2000. "In the upcoming budget request for fiscal 2001,
> we will ask for a further $225million to make good on our commitment to
> HIPC going forward," Summers said.
>
> Of the total sought for 2001, $150 million would be paid into the HIPC
> trust
> fund established by the International Monetary Fund and the World Bank for
> debt relief.  The remaining $75 million would be used to forgive debts
> owed directly by poor nations to the U.S.  "To underscore our commitment
> to seeing this initiative through, (Clinton) is also requesting $375
> million in fiscal year 2001 in advance appropriations for these two
> elements of HIPC," the Treasury secretary added.
>
> Summers said the White House also wants Congress to allow the IMF to have
> access to all the proceeds earned through the revaluation of about 11
> million ounces of IMF gold. Under an agreement struck last November
> between the White House and Republicans, the IMF is allowed to draw upon
> two-thirds of the proceeds of the gold revaluation, with the remaining
> funds to be freed only after review of the debt relief initiative by
> Congress in May.
>
> Summers said success of the debt relief effort hinges on funding by the
> world's wealthier nations, and that proposed debt forgiveness for Bolivia,
> Guyana, Honduras and Nicaragua "will not happen" if the U.S. doesn't make
> good on its funding commitments.
>
> (Copyright (c) 2000, Dow Jones & Company, Inc.).
>
> Source: DOW JONES INTERNATIONAL NEWS 01/02/2000
>