[QODLink]
Archive
Paris Club to discuss tsunami relief
Paris Club finance officials who represent rich creditor nations are to discuss a possible freeze on debts owed by tsunami-affected countries.
Last Modified: 12 Jan 2005 15:26 GMT
France's finance minister (R) said the Paris Club will freeze debt
Paris Club finance officials who represent rich creditor nations are to discuss a possible freeze on debts owed by tsunami-affected countries.

The proposal already has the support of several leading members, but questions remain over the terms of any deal on Wednesday due to the large sums owed.

Indonesian debt alone is supposed to generate more than $3 billion in principal repayments to the Paris Club in 2005, and the tsunami-struck region should have generated a total of $5 billion.

Some development lobby groups, including UK aid agencies Oxfam and Action Aid, have called on the Paris Club nations to write off the debt altogether.

However, analysts suggest that Paris Club members may propose the concerned governments use their own financial resources to respond to the disaster rather than having to make debt payments.

The G7 of leading industrialised nations, currently chaired by UK finance minister Gordon Brown, backed a freeze on repayments on Friday.

Indonesian reaction

Indonesia's foreign minister has already cautiously welcomed any promise of a debt moratorium, but said his country needed donations rather than new loans.

Foreign Minister Hasan Wirajuda added on Monday that Indonesia expected Western creditors to allow it to freeze up to $3.2 billion in debt repayments until 2006 to deal with the disaster.

That would amount to about one third of its $8.8 billion in scheduled repayments over the next two years to the group of sovereign creditors.

Source:
Agencies
Topics in this article
Organisation
Featured on Al Jazeera
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
Colleagues of detained Al Jazeera journalists press demands for their release, 100 days after their arrest in Egypt.
Mehdi Hasan discusses online freedoms and the potential of the web with Wikipedia founder Jimmy Wales.
A tight race seems likely as 814 million voters elect leaders in world's largest democracy next week.
Featured
Venezuela's president lacks the charisma and cult of personality maintained by the late Hugo Chavez.
Despite the Geneva deal, anti-government protesters in Ukraine's eastern regions don't intend to leave any time soon.
Since independence, Zimbabwe has faced food shortages, hyperinflation - and several political crises.
After a sit-in protest at Poland's parliament, lawmakers are set to raise government aid to carers of disabled youth.
A vocal minority in Ukraine's east wants to join Russia, and Kiev has so far been unable to put down the separatists.
join our mailing list