British debt relief for region’s poorest

Chancellor Gordon Brown and International Development Secretary Clare Short pledged on Monday that all debt payments to Britain from 41 of the world’s poorest countries had now stopped or would be held in trust to fund poverty reduction, agencies reported. Angola, Zambia, Mozambique and Malawi are among the 41 countries. Speaking at a rally in London, organised by Jubilee 2000, an NGO campaigning for international debt-relief, the chancellor said:
“I can say to you - and to all 41 countries on behalf of the British Government - I will renounce our right to receive any benefit from the historic debt owed by all the 41 most indebted countries”.

The IMF and World Bank have agreed that 20 countries will receive debt relief by the end of the year. This would lead to over US $400 million in debts to Britain being written off, benefiting 200 million people. In total US $50 billion in debt relief will be pledged for these 20 countries.

Brown went on to call for other countries to follow Britain’s lead: “Today here in London I ask our neighbours having - like us - made sure that the payments for debt will be spent on poverty relief, to also renounce their right to any benefit from the historic debt owed by these 41 heavily indebted countries.” Britian’s Financial Secretary Stephen Timms on Monday left for Zambia, Malawi and South Africa where he will explain the new initiative and talk to leaders about debt relief.