Summary
US plan to forgive its own debt to poor countries
The US has relaunched a radical initiative aimed at easing the debt burden of the world's poorest countries. Known as the Heavily Indebted Poor Countries (HIPC) Initiative, the plan calls for the World Bank, the IMF and donor countries to pool resources into a $4.7 billion trust fund that would be used to finance the debt-forgiveness program of multilateral lenders. To demonstrate America's commitment to the plan, Pres Clinton has announced his intention to cancel all debt to the US by HIPC beneficiaries provided the money saved went to poverty alleviation programs in the debtor nations.See the full content of this document
Extract
Debt - a prayer answered.
The IMF's plan to remove the burden of debt on some of the poorest countries in the world has been hailed as a major breakthrough. The US has endorsed the plan by forgiving its own debt to poor countries. But will this be the springboard for the elimination of poverty in Africa or will the money saved from debt servicing be squandered away?
In response to pressure from African governments, the IMF and the United States have revitalised a revolutionary 1996 initia...See the full content of this document
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