Hopes of debt/poverty relief crumble as US and Europe disagree

[G_j]

(let them, well...starve.)

http://www.noticias.info/asp/aspComunicados.asp?nid=59306&src=0

Deal to Ease Poor Nations' Debt Eludes Rich Nations

The world's richest nations failed to reach a deal to forgive $40 billion in debt owed by the world's poorest nations, though their finance ministers affirmed Saturday that they were still pursuing the goal, reports The New York Times.

The main disagreement is between the United States and Europe over an American approach that would reduce money available for very low-interest lending to poor countries. The United States favors canceling the debts that poor countries owe to the World Bank and the African Development Bank, which finance antipoverty programs on concessional terms, but has made no commitment to make up the money the two banks would lose in loan repayments. The Europeans want the rich countries to make such a commitment.

The departing World Bank president, James D. Wolfensohn, who opposes the American approach, said in an interview that about 20 percent of the money his group lends to poor countries is from loan repayments, and that the percentage is rising. If that money is not replaced when debts are canceled, the bank will have less money to lend, he said. He credited the United States with increasing aid to poor countries generally, but on this issue, he said, ''As managers, you have to expect us to fight tooth and nail.''

An International Monetary Fund report from March lays out how the fund could sell off some of its $45 billion in gold to finance debt relief. The British support the sale of the gold. The United States is opposed. At a news conference on Saturday, Treasury Secretary John W. Snow said the United States was focused on the World Bank and the African Development Fund because they hold most of the poor nations' debt.


..more..

[whistle]

1. Poor nations should now include the United States....

....federal debt $7.8 trillion, total debt of both public and private nearly $50 trillion or five times GDP.

[G_j]

2. it occurred to me that these WB/IMF loans that have poor countries crippled

with interest and locked in poverty are somewhat similar to the way credit card companies seduce people into debt.
Not surprising that Bush & co would undermine attempts to help out these countries.