100% debt relief for 19 countries: IMF

In an effort to allow 19 poor countries to promote growth and make progress towards achieving the Millennium Development Goals, the International Monetary Fund will grant 100 per cent debt relief to them amounting to $3.3 billion.

"I am delighted to announce that the IMF will grant 100 per cent debt relief to 19 countries under the Multilateral Debt Relief Initiative amounting to about 3.3 billion," Rodrigo de Rato, managing director of the Fund said.

"This is an historic moment, which will allow these countries to increase spending in priority areas to reduce poverty, promote growth, and to make progress towards achieving the Millennium Development Goals," he said.

The 19 countries that qualify as a result of the first phase of the assessment include Benin, Bolivia, Burkina Faso, Cambodia, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tajikistan, Tanzania, Uganda and Zambia. They would receive the debt relief in early 2006, he said.

"Bringing the MDRI to this stage since it was proposed in June 2005 has taken an intensive effort", he added.

He maintained that the list of countries announced represented only the first phase and that there are other nations as well that are eligible and at various stages on the road to qualification under the MDRI.

For this debt relief to take effect, the Fund still needs consent from some contributors to the PRGF Trust Subsidy Account, which is one of the financing sources for the MDRI resources for debt relief.