[stop-imf] Jubilee USA press release on US-UK agreement

[robert weissman]

Jubilee USA Network * www.jubileeusa.org

FOR IMMEDIATE RELEASE
Friday, June 10, 2005

Contact: 	Debayani Kar, 202-783-0215 / 202-246-8143 (cell)
		Neil Watkins, 202-783-1029 / 202-421-1023 (cell)


Jubilee USA Encouraged By Apparent US-UK Agreement for 100% Cancellation of
IMF, Multilateral Debts

Pressure Mounts on France, Germany, Japan to Embrace 100% Cancellation;
Proposal Must Be Expanded to Include All Impoverished Countries

WASHINGTON - As G-8 Finance Ministers meet in London, Jubilee USA Network
was encouraged today by the apparent agreement reached between the US and UK
for 100% cancellation of IMF and multilateral debts for some heavily
indebted countries, but insisted all impoverished nations must be included
in the deal. The Network had been extremely concerned that IMF debt had been
excluded from a deal, and was pleased to see it back on the table.

"The US-UK proposal for 100% debt cancellation for some poor nations to the
IMF and other international lenders is a significant development, and it is
now up to France, Germany, Japan, and the rest of the G-8 to come on board,"
said Neil Watkins, National Coordinator of Jubilee USA Network. "Debt
cancellation must be expanded to include all impoverished countries, not
just the 18 nations included so far, without subjecting them to harmful
economic conditions."

Reports of the US-UK proposal for multilateral debt cancellation indicate
that it includes a deal for 100% cancellation of debt to the World Bank,
IMF, and African Development Fund for 18 "completion point" Highly Indebted
Poor Countries (HIPC). Jubilee USA Network is concerned that the eligible
nations represent only a small portion of the countries that require 100%
cancellation. A competing proposal put forward by France, Germany, and Japan
plan would reduce (not cancel) the debts of only five countries. Jubilee USA
called on G-8 leaders to clearly reject this approach.

"It is clear that at the upcoming G-8 summit we are witnessing a KAIROS
moment where through God's grace we have a historic opportunity to cancel
100% of the debt of impoverished nations. What we need now is for the rest
of the G-7 to follow the moral and political leadership of President Bush
and Prime Minister Blair in the next few weeks," said Adam Taylor, Co-Chair
of Jubilee USA Network and Director of Campaigns and Organizing at
Sojourners.

Jubilee USA Network expressed strong concerns that the use of HIPC
Initiative criteria to determine which countries receive debt cancellation
is misguided as it requires countries to implement harmful economic
policies, that have not been proven to increase per capita income growth or
reduce poverty. Jubilee USA called on the HIPC Initiative and harmful
economic conditions attached to debt cancellation must be abandoned.

The narrowing of the number of countries eligible for 100% debt cancellation
under the US-UK proposal highlights the fact that one of the key stumbling
blocks to a full G-8 agreement has been how such a deal would be financed.
Jubilee USA Network continues to support limited sale of IMF gold to finance
debt cancellation for additional countries.

Earlier this week, the government of Guyana, where gold accounts for 25% of
exports, released a statement in favor of IMF gold sales to finance debt
cancellation. Testimony by Center for Global Development President Nancy
Birdsall and Jubilee USA Senior Adviser Sony Kapoor at a Congressional
hearing in the House Financial Services on Wednesday provided support for
100% debt cancellation, also urging the sales of IMF gold. Joint Economic
Committee Chair Rep. Jim Saxton on Tuesday called for 100% debt
cancellation, with the possibility of using IMF gold through restitution for
financing cancellation. A March IMF report identified mechanisms whereby its
gold could be sold with no impact on world price.

Jubilee USA Network further notes that action by the G-8 on impoverished
country debt in 2005 in the manner described above would provide an
important first step towards the Jubilee vision of a world where external
debt no longer diverts resources from impoverished people or constrains
policy choices. Jubilee USA Network will continue to work for debt
cancellation for more countries (such as middle income countries with large
impoverished populations and those with odious/illegitimate debts) and
creditors (such as the InterAmerican Development Bank) not included in this
year's initiative in the years ahead.


Jubilee USA Network is the US arm of the international movement working for
debt cancellation for impoverished nations. Jubilee USA is a network of over
70 religious denominations, labor groups, environmental organizations, and
community and advocacy groups working to break the chains of debt. For more
information, see www.jubileeusa.org.