[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
Muslim volunteers face questioning and threat of arrest, while aid has been disrupted or blocked, charities say.
Six months on, outrage and sorrow over the mass schoolgirl abduction has disappeared - except for families in Nigeria.
ISIL combatants seeking an 'exit strategy' from Mideast conflict need positive reinforcement back home, analysts say.
European nation hit by a wave of Islamophobia as many young fighters join ISIL in Syria and Iraq.
Featured
Lacking cohesive local ground forces to attack in tandem, coalition air strikes will have limited effect, experts say.
Hindu right-wing groups run campaign against what they say is Muslim conspiracy to convert Hindu girls into Islam.
Six months on, outrage and sorrow over the mass schoolgirl abduction has disappeared - except for families in Nigeria.
Muslim caretakers maintain three synagogues in eastern Indian city, which was once home to a thriving Jewish community.
Amid fresh ISIL gains, officials in Anbar province have urged the Iraqi government to request foreign ground troops.