Republic of Congo qualifies for debt relief

The Republic of Congo (Congo Brazzaville) has become the 29th country to qualify for the international debt relief scheme - after an unexpected last-minute delay.

In total, the World Bank estimates that the scheme will save Congo $2.9 billion in debt payments. Other African countries which have received similar debt relief have been able to abolish primary school fees, giving far more children access to an education; build schools, clinics and roads; and fund teachers, immunisation programmes and other health projects. The relief being offered to Congo now is a tribute to the worldwide debt campaign, which first persuaded creditors to put a debt relief scheme in place.

However, this step was delayed because of concerns at the last minute about governance and transparency in Congo. The country will have to comply with a number of extra measures to meet these concerns before receiving irrevocable debt cancellation. Whilst we believe these concerns are extremely important, many civil society organisations are questioning the process, in which the World Bank apparently only decided at the very last minute that these concerns were serious enough to delay debt cancellation. Instead, the World Bank and IMF had been focusing on imposing changes in economic policy - Jubilee Debt Campaign and others reject this outside control of economic policy.

The debt relief is being delivered through the Heavily Indebted Poor Countries (HIPC) initiative. HIPC has been criticised for offering too little, too slowly, and having far too many unfair, damaging and irrelevant conditions attached. The scheme was launched in 1996, but this is the first benefit that Republic of Congo has had from it.

When Congo eventually completes the HIPC scheme, it will qualify for the additional debt relief promised - thanks to vocal campaigning - at the G8 summit in 2005. This will include full cancellation of IMF and African Development Fund debts incurred up to the end of 2004 and of World Bank debts up to the end of 2003.

More than one child in ten in the Republic of Congo dies before the age of five. Jubilee Debt Campaign is calling for full, immediate cancellation of debts for all countries that are not otherwise able to meet their human development needs, without economic policy conditions.