[stop-imf] Jubilee USA response to G-7 statement

[Robert Weissman]

April 16, 2005

CONTACT: Debi Kar, 202-783-0215 or 202-246-8143

Jubilee USA Network Statement

G-7 Delays Despite Urgent Need for Full Multilateral Debt Cancellation

Snow Appears to Back Away from US Commitment to IMF Debt Cancellation; Jubi=
lee USA Extremely Concerned

WASHINGTON =96 Jubilee USA Network today issued the following statement, in=
 response to the outcome of the G-7 Finance Ministers and International Mon=
etary and Financial Committee meetings in the context of the IMF/World Bank=
 spring meetings this weekend in Washington:

The statements today represent no significant progress in the debate over 1=
00% multilateral debt cancellation for impoverished nations. The G-7 has no=
t moved much beyond what they had agreed upon at their last meeting in Febr=
uary.

Of particular concern is a statement by US Treasury Secretary John Snow tha=
t =93we are not persuaded by arguments for IMF debt relief, and we do not b=
elieve market or =91off market=92 gold sales are necessary or warranted.=94=
 We are extremely concerned that this represents a step backwards. Jubilee =
USA network reaffirms its demand that 100% debt cancellation must be enacte=
d by the IMF as well as the World Bank and other multilateral creditors.

We are disappointed that yet again the G-7 has chosen delay over decision. =
We have seen that delay costs lives. Since the G-7 began discussing debt ca=
ncellation proposals in June 2004, more than 4 million children under age f=
ive have died from preventable diseases which could have been addressed wit=
h the extra funds released through debt cancellation.

Progress has stalled not because of disagreement over the principle of debt=
 cancellation but over the mechanics of how to finance such cancellation. T=
his is unacceptable given that the World Bank and IMF possess the funds to =
pay for cancellation, through the World Bank=92s accumulated financial rese=
rves and the IMF=92s vast gold reserves. The IMF=92s report on the possibil=
ity of IMF gold sales submitted to this G-7 meeting demonstrates that gold =
sales could take place without negatively impacting the world market price =
for gold.

Meanwhile, impoverished countries in Africa, Asia, and Latin America contin=
ue to spend more on debt service payments to the IMF, World Bank, and other=
 creditors, than they pay on social services like health care and education=
. Last year, African nations spent more than $13 billion on debt payments t=
o wealthy creditors including the IMF and World Bank. As the HIV/AIDS crisi=
s takes the lives of more than 6,000 people in Africa everyday, we can no l=
onger afford to put debt before life. We continue to call for 100% debt mul=
tilateral debt cancellation without harmful economic conditions for all imp=
overished nations.

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