G8 Debt Relief to 18 Countries to Alleviate Global Poverty

BBC News reports that the world’s eight richest countries have reached a landmark debt relief deal to alleviate global poverty. The G8 countries are the United States, Canada, Britain, France, Germany, Italy, Japan and Russia. Some news report snippets follow.

“The move provides relief for poor, indebted nations, mostly in sub-Saharan Africa, freeing up much-needed revenue.”

“Under the deal, the World Bank, the International Monetary Fund and the African Development Fund will immediately write off 100% of the money owed to them by 18 countries – a total of $40bn. This will save the group a total of $1.5bn a year in debt repayments.”

“Relief groups welcomed the plan as a step in the right direction – but said some it should be extended to cover more developing countries.”

“Twenty-seven countries are eligible for debt relief under the HIPC (highly-indebted poor countries initiative). The 18 that have reached completion point, and will therefore qualify for immediate debt relief, are shown in bold:

Benin, Bolivia, Burkina Faso, Cameroon, Chad, Democratic Republic of Congo, Ethiopia, Gambia, Ghana, Guinea, Guinea Bissau, Guyana, Honduras, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Sao Tome, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia“