[stop-imf] IMF failing to agree on debt plan

[robert weissman]

IMF failing to agree on debt plan

October 3, 2004, BBC NEWS

http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/3711078.stm

The world's leading finance officials and ministers appear to
have failed to reach agreement on debt relief for the poorest
nations.

Wrapping up a weekend of International Monetary Fund (IMF)
and World Bank talks in Washington, no agreement seems to
have been secured.

While UK Chancellor Gordon Brown has put forward a specific
100% debt relief programme, others are more cautious.

So far the IMF members have not been able to agree on a
concrete plan.

All the IMF's policymaking arm - International Monetary and
Financial Committee - could agree to on Saturday was to
reaffirm its pledge to ease the debt burden of the world's
most impoverished nations.

In a statement it said it "looks forward to further
consideration of outstanding issues in the proposed framework
for debt sustainability, before it is made fully operational,
and of further debt relief, including its financing."

UK pressure

The failure to reach agreement appears to have come despite
the best possible efforts of Mr Brown.

Earlier on Saturday he had reiterated the UK government's
pledge to write off its share of debt owed to the World Bank
and the African Development Bank by poor countries and called
on other nations to do the same.

"Many countries are still being forced to choose between
servicing their debts and making investments in health,
education and infrastructure," said Mr Brown.

"There's a growing consensus that multilateral debt relief
has to be dealt with as soon as possible."

The IMF left the issue for later consideration.

Golden ideal

Under Mr Brown's proposals, the IMF would help pay for debt
relief by revaluing its substantial gold holdings.

Action Aid, a charity which campaigns for the cancellation of
the debt of the world's poorest nations, expressed its
disappointment that the IMF had failed to reach agreement.

"It's time to replace notebooks with cheque books," said
Action Aid spokesman Romilly Greenhill.

Earlier the IMF voiced its concern about the dangers of
rising oil prices to global prosperity.

At Friday's accompanying meeting of the G7 group of
wealthiest industrialised nations, their finance ministers
called on China to look towards allowing the yuan to float
freely on the international currency markets.

Currently China has tied its value to the US dollar, a
position which US government has long complained makes
Chinese exports un-naturally cheap.

=A9 BBC MMIV