50 Years, Jubilee Call on G8 to Cancel 100% of Debt

Jun 9, 2004

FOR IMMEDIATE RELEASE
JUNE 9, 2004

CONTACT: Marie Clarke, c: 202-255-7849
Njoki Njehu, c: 202-746-4318
Neil Watkins, c: 202-421-1023

Jubilee USA Network and the 50 Years Is Enough Network call for 100% debt
cancellation beyond HIPC Initiative in anticipation of G8 breakthrough

SAVANNAH, Ga. – Jubilee USA Network and the 50 Years is Enough
Network applaud preliminary reports that President Bush and Prime Minister
Blair are discussing a plan to provide 100% debt cancellation for some of the
world's most impoverished countries. However getting the details right will
prove paramount to providing a real solution.

“In this critical moment, Jubilee USA Network calls for bold leadership by the
G-8 for 100% cancellation of the debts of all impoverished nations without
harmful conditions, not the piecemeal and partial relief provided by the HIPC
initiative,” said Marie Clarke, National Coordinator of Jubilee USA Network.

“After eight years the Heavily Indebted Poor Country Initiative (HIPC) has
failed to provide a real exit from the crisis of debt for impoverished nations,
even by its own flawed standards,” said Njoki Njehu, Director of the 50 Years
Is Enough Network. “The initiative has been plagued by an obstacle course of
counterproductive conditions. HIPC has been too slow with too many
conditions and benefiting too few countries. A true exit from the crippling
impact of debt requires moving beyond HIPC by de-linking cancellation from
harmful structural adjustment conditions.”

A clear concern for the G-8 will be how to finance such an increased
commitment to debt cancellation. The Debt and Development Coalition in
Ireland’s recent report indicates that the IMF and World Bank can afford to
cancel 100% of the debts of impoverished nations from their own resources,
without jeopardizing their credit rating or their ability to lend to other
developing nations. Jubilee USA Network and the 50 Years Is Enough
Network call on the G-8 to also ensure that other creditors, including the IMF
and World Bank, fund cancellation from their own resources.

This expanded program will likely be linked to a deal reached around
canceling Iraqi debt. Jubilee USA Network and the 50 Years Is Enough
Network recognize Iraqi debt as odious and therefore must be cancelled
outright. This same principle should be applied to all nations being forced to
pay twice for their own oppression. Odious debt has been defined through
international law as loans made to oppressive or dictatorial leaders who used
the funds to oppress their people or for personal use.

“The G-8 countries have dragged their feet for too long sacrificing the health
and stability of millions of people around the world. While not a magic bullet,
without debt cancellation countries will be unable to invest in human security,”
said Njehu.

“100% debt cancellation would be the decisive action that moves the G-8 from
lip service on addressing poverty to effectively build right relationships
between nations, the true vision of Jubilee,” said Clarke.

###

^TOP

50 Years Is Enough Network - 3628 12th St NE, Washington, DC 20017 USA
Tel: 202-IMF-BANK (202-463-2265) Email: info@50years.org