Japan Ready to Forgive Debts of Impoverished Countries AP 28-APR-99 TOKYO (AP) -- Japan is ready to cancel the debt of the world's most impoverished nations as long as those countries implement reforms and other industrialized countries share the burden. As the biggest provider of Official Development Aid loans, Japan has been reluctant to join other rich countries in announcing plans to waive its loans to the 41 most indebted Third World countries. But the government has decided that these countries will be eligible for complete debt relief if they demonstrate an ability to manage their economies responsibly, a Foreign Ministry official who spoke on customary condition of anonymity said Wednesday. Japan has already implemented an 80 percent debt forgiveness plan for impoverished countries. In order to raise the debt relief ceiling to 100 percent, Tokyo wants other industrialized countries to contribute funds to help cover the cost of Japan canceling its $7.82 billion in ODA loans, the official said. The debts would effectively be canceled by expanding grants to the impoverished countries. The program would be facilitated by cooperation among industrialized countries to contribute to debt relief programs of the World Bank and the International Monetary Fund, the Foreign Ministry official said. Japan also wants the IMF to sell its gold reserves in order to bolster Third World debt relief measures, the official said. The Japanese government also said it is prepared to increase the debt relief ceiling for non-ODA loans to poor countries beyond the current 80 percent. World leaders hope to agree on a debt forgiveness strategy for impoverished countries at a summit of G-7 nations in Germany in June. German Chancellor Gerhard Shroeder has said he wants industrialized countries to waive all ODA loans to the 41 impoverished countries by 2000. Copyright 1999& The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. ================================= Robert F. Tatman [EMAIL PROTECTED] [EMAIL PROTECTED] Remove "nospam" from the address to reply. NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml POSTING THIS MESSAGE TO THE INTERNET DOES NOT IMPLY PERMISSION TO SEND UNSOLICITED COMMERCIAL E-MAIL (SPAM) TO THIS OR ANY OTHER INTERNET ADDRESS. RECEIPT OF SPAM WILL RESULT IN IMMEDIATE NOTIFICATION OF THE SENDER'S ISP. ____________________________________________________________________ Get your own FREE, personal Netscape WebMail account today at http://webmail.netscape.com.
