[stop-imf] Victory: IMF Board approves debt cancellation without delays!

[Robert Weissman]

 From Jubilee USA:

Dear Jubilee Activists,

Congratulations! Your calls and emails combined with those of debt
campaigners all around the world made a crucial difference in the IMF=92s
decision today to move forward with debt cancellation for all but one of
the 18 countries promised debt cancellation by the G-8 last summer (see
the press release below for details).

Thanks to your quick response, over 21,000 emails were sent to the IMF
Executive Directors over the past week! Many thanks go to Africa Action
for allowing us to use their =93one click=94 system to email the IMF
Executive Directors. We also heard from the offices of the Dutch and
Belgian Executive Directors that their staff was kept busy fielding
constant calls from Jubilee activists ever since the alert went out!

Although the G-8 deal is only one small step toward our vision of debt
cancellation for all impoverished countries, */turning the IMF around on
this issue is a significant victory/* which will mean millions of
dollars to help meet human needs in Nicaragua, Ethiopia, Madagascar,
Rwanda, and Senegal.

* *

Once again, thank you for your dedication and your activism. We wish you
peace & joy this holiday season and look forward to reconnecting with
you in the New Year as we continue to work together for Jubilee justice!

Warmly,

Neil, Debi, Kristin, Diane, and Sarah at Jubilee USA Network

* *

*Jubilee USA Network * www.jubileeusa.org
<http://www.jubileeusa.org>
FOR IMMEDIATE RELEASE
December 21, 2005

Contact: *Debayani Kar, 202-783-0215, 202-246-8143
Neil Watkins, 202-783-0129, 202-421-1023

*Jubilee USA Relieved that IMF Board Approves Debt Cancellation for
Countries Promised by G-8

Jubilee Urges World Bank to Also Approve Debt Cancellation
Network Continues to Call on Creditors to Increase Number of Countries
Benefiting, and De-Link Harmful Economic Conditions From Debt Cancellation*


WASHINGTON =96 Following today=92s announcement by the International
Monetary Fund (IMF) Executive Board, Jubilee USA Network breathed a sigh
of relief that 19 impoverished countries will see their debts cancelled
in early 2006. Jubilee USA urges the World Bank Board to also approve
debt cancellation without delays when it meets in early 2006. However,
Jubilee USA reiterated its view that the G-8 debt agreement is but a
first step towards conclusively addressing the debt crisis faced by
impoverished countries.

Neil Watkins, National Coordinator of Jubilee USA Network said: =93We are
relieved that today the IMF board reversed a terrible proposal that
would have delayed $650 million in debt cancellation for some of the
world=92s most impoverished nations. Pressure from debt campaigners across
the US and the globe and supportive governments led to this important
reversal. We welcome the decision. We also serve clear notice that this
agreement is only a first step on a long journey and we will continue to
pressure world leaders to cancel the debts of all impoverished countries
in the months and years ahead.=94

The IMF side of the debt cancellation agreed at the G-8 summit in July
had been under attack by some governments and IMF staff in recent weeks.
The announcement by the IMF today was that 100% debt stock cancellation
beginning early 2006 had been approved by the IMF Executive Board. In
early December the IMF had released its plan for implementing the G-8
debt deal. The IMF had announced that there would be a final economic
test for impoverished countries to meet to receive debt cancellation in
2006. This move threatened access to debt cancellation for six
countries, including Ethiopia, Madagascar, Mauritania, Rwanda, Senegal
and Nicaragua. According to press reports, Mauritania will not see debt
cancellation at this time due to not having a program with the IMF and
for what the Fund called a =93substantial deterioration=94 in public
expenditure management since the country became eligible for debt
cancellation in 2002. The IMF will also cancel the debts of Cambodia and
Tajikistan, who were not included in the G-8 deal.

While Jubilee USA welcomes this outcome, given the recent threats to
this debt cancellation agreement, the organization reiterated its
concern that additional countries will have to implement further harmful
economic conditions to qualify for this debt cancellation. The G-8 debt
agreement will cancel 100% of 17 impoverished countries=92 debts to the
International Monetary Fund (IMF), World Bank, and African Development
Bank in 2006. The G-8 deal excludes dozens of other impoverished nations
and debt to other significant creditors such as the Inter American
Development Bank, does not address odious and illegitimate debt, and
preserves economic conditionality. Jubilee USA will continue its
campaign on these issues in 2006 and beyond.

For recent research on these issues, visit www.jubileeusa.org
<http://www.jubileeusa.org>.

/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 for freedom
from debt for countries in Africa, Asia, and Latin America. /

Kristin Sundell, M.Div.

Outreach and Congregations Coordinator

Jubilee USA Network

202-546-4470 (office); 443-845-4461 (cell)

kristin@jubileeusa.org

www.jubileeusa.org