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World Bank, IMF Endorse $40 Billion Debt Relief for Poorest Countries
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Gordon Brown, Britain's chancellor of the exchequer, is pleased that
the deal he sponsored and worked on for many years is now becoming a
reality







IMF Managing Director Rodrigo de Rato, left, and Gordon Brown, U.K.'s
chancellor of the exchequer, right, at IMF Headquarters in Washington,
Saturday, Sept. 24, 2005Meetings in Washington of global financial
institutions ended Sunday with agreement on implementing the ambitious
debt relief program reached at last July's eight-nation (G8) summit in
Scotland. 

Gordon Brown, Britain's chancellor of the exchequer, is pleased that
the deal he sponsored and worked on for many years is now becoming a
reality.

"Agreement is now reached on all the elements. The managing director
[of the IMF] has notified the [policy making] committee that he will
now call the executive board together to complete its approval of the
arrangements to deliver debt relief by the end of 2005," Mr. Brown
said.

Trevor Manuel, South Africa's finance minister, Sunday announced that
the World Bank had joined the International Monetary Fund in endorsing
the debt reduction agreement.

"I think we can all say thank you very much to the World Bank and the
IMF. The development committee [which I chaired] is satisfied as is
reflected in the communiqué that those [debt reductions] agreements
are met," Mr. Manuel said.

New World Bank president Paul Wolfowitz, agreed that the debt
reduction accord is a significant achievement.

"The high point of the meetings is the historic endorsement provided
by both the development committee [the bank's policy making group] and
the IMFC [the IMF's policy making group] of the G8 proposals to cancel
100 percent of the debts of some of the world's poorest countries," he
said.

For the first time, official debts to the IMF and the World Bank are
being canceled with the financial shortfall being made up by fresh
contributions from rich countries. The debt deal was initialed last
July at Gleneagles, Scotland at the summit of the leaders of the Group
of Eight industrialized countries.

The G8 includes the United States, Japan, Canada, Britain, France,
Germany, Italy and Russia.