printer printer Click on the green icon on the right
Press release
The CADTM condemns the IMF for blocking six very poor countries’ hopes of debt relief
by CADTM
19 December 2005

Last summer the summit meeting of the eight most industrialised countries (G8) decided that the 18 highly indebted poor countries that had satisfied the many demands imposed on them could benefit from a complete cancellation
of their debt to the IMF, the World Bank and the African Development Bank.

In September, despite strong misgivings voiced by small rich countries such as Belgium and Switzerland, the IMF general meeting sanctioned the agreement that the G8 had committed it to, surprisingly if one considers the G8’s own statements on good governance.

Yet now, far from media attention, the IMF Executive Board is trying to rescind its commitment or at least reduce its impact. To this effect it will be suggested to the Board of Governors’ meeting next Wednesday (21 December) that they add conditionalities for countries that will no longer
be part of an IMF programme from the beginning of 2006.

As it happens, 6 out of the 18 HIPC are concerned: Ethiopia, Madagascar, Mauritania, Rwanda, Senegal and Nicaragua.

While the G8’s original agreement was presented as final and definite, the IMF now wants to subject these countries to further monetary and fiscal conditions, after several decades of drastic reforms that have already deeply eroded the living conditions of a large majority of their
people.

The G8 countries control 49.73% of the votes at the IMF Board of Governors, so no agreement can be reached without their consent. If the IMF achieves its goal,
the G8 countries will have broken their own commitment.

The CADTM finds it intolerable that the IMF should thus attempt by every possible means to delay the implementation of even such a limited measure, given the few countries involved. The IMF, being a tool in the hands of powerful countries and interests, strives behind the scenes to maintain the political lever of the debt while parading sensational announcements that soon turn out to lack any substance.

The CADTM demands the complete and unconditional cancellation of the debt incurred by all developing countries as the only way of releasing them from their creditors’ exigencies.

The CADTM condemns the IMF for blocking debt relief for 6 countries

PARIS, 17 Dec. 2005 (AFP) - The Committee for the Abolition of Third World Debt (CADTM) protests against further obstacles placed by the International Monetary Fund (IMF) in the way of debt relief for six very poor countries,
it said in a press release on Saturday.

"Behind the scenes, the IMF Executive Board is now trying to go back on its commitment, made last summer, by persuading the Board of Governors to add conditionalities for countries that will no longer be part of an IMF
programme from the beginning of 2006,
" claims the CADTM.
According to the Committee, six countries are concerned, namely Ethiopia, Madagascar, Mauritania, Rwanda, Senegal and Nicaragua.

Last summer, the summit meeting of the eight most industrialised countries (G8) decided that 18 highly indebted poor countries that had satisfied the many
demands imposed on them could benefit from a complete cancellation of their debt to the IMF, the World Bank and the African Development Bank, recalled the CADTM.
The G8 countries control 49.73% of the votes at the IMF Board of Governors so that no agreement can be reached without their consent. If the IMF achieves its goal, the G8 countries will have broken their own commitment,
warns the CADTM, who are demanding “the complete and unconditional cancellation of the debt incurred by all developing countries.

CADTM