Though the International Monetary Fund (IMF) and the World Bank have endorsed the decision agreed by the G8 leaders to cancel the debts of the poorest countries in the world, Christian Aid warns that five billion of the world’s poor are still confined in debt.
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Christian Aid’s debt expert Sony Kapoor said, “The decision will be good news for some, holds hope for others but will disappoint the majority who will not see any debt relief.”

Speaking from the World Bank/IMF meetings in Washington DC, he continued, “In the select group of 18 countries, it will transform lives for the better. Millions will go to school for the first time, be vaccinated against killer diseases and get access to clean water.

“For the other ten or so countries that could qualify by next year, the deal brings hope”.

But he added: “The G8, the Bank and the Fund have forgotten about the more than 100 other poor countries that urgently need their debts cancelled. For them the deal brings disappointment with perhaps a glimmer of hope of further action following this precedent.”

In a new report released by Christian Aid, ‘What About Us: Debt and the Countries the G8 Left Behind’, the truth about the debt deal which will still leave 19 out of 20 people in the developing world in debt is revealed.

|TOP|The report suggests tangible and politically feasible steps that both rich and poor countries should take for countries that have been left out in the deal to get relief.

Kapoor hailed the British Government’s efforts for its work to come to an agreement the deal but warned that much more work must be accomplished.

“Now that the political agreement has been achieved, we need to ensure that there is no devil in the detail – no country gets knocked off,” he said. “Most of all, both governments and campaigners need to keep the momentum going and expand the list.”

Every year, the world’s poorest countries continue to pay debt payments of US$120 million every day, meaning that they are paying back more money than they receive in grants and loans.

To eliminate extreme poverty worldwide, over 40 countries must receive total cancellation of their external debts immediately. Many more must receive a considerable reduction from the amount of debt they are required to pay.

“These countries are home to vast numbers of poor people and are forced by an iniquitous system to waste large amounts of money on debt repayments rather than spending it on the health care and education that their people so urgently need,” said Kapoor.