Loose ends on debt deal need tying up

This weekend, Jubilee Debt Campaign and Jubilee USA are urging creditor countries, the World Bank and the IMF to resolve the issues which threaten to wreck the debt cancellation deal proposed by the G8 in July.

In June 2005 - at the G7 Finance Ministers meeting in London - and July 2005 - at the G8 summit in Gleneagles, Scotland - the Finance Ministers and leaders of the world's richest countries announced a "historic" deal on debt cancellation.

While recognising that it did not offer everything campaigners have been calling for, Jubilee Debt Campaign and partners including Jubilee USA welcomed the deal as a critical first step on debt cancellation. (Click here for more information about the proposed deal.)

However - the deal has not yet been implemented, and there is serious doubt over whether it will be properly put into place at all. There remain serious areas of difference between some countries, including questions of the conditions countries would have to fill to qualify; and whether the additional financing required will be provided, and whether any other countries should qualify for any part of the deal. Whether these are resolved will determine whether the deal is agreed or delayed yet again.

Jubilee Debt Campaign and Jubilee USA have produced a briefing paper, 'Loose Ends', which sets out these important issues, urging their resolution as soon as possible, and makes clear where the deal needs to go further (eg by abolishing harmful conditions, and including more countries and more debts).

Failure to deliver this deal now would see the Gleneagles agreement fall apart, promises betrayed, and the hopes of millions of poor people dashed once again.

A copy of the briefing (8 pages) can be downloaded using the link on the right.