Multilateral debt initiative, a cruel hoax!
For Release: October 2, 1996

Time is running out for international efforts to resolve the debt crisis
For Release: September 9, 1996

Time is running out for international efforts to resolve the debt crisis facing the poorest countries. At the end of September, Finance Ministers from around the world will gather at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank in hopes of finalizing a plan for debt reduction. At this late date, however, many key issues remain unresolved and the entire initiative could yet collapse.

Introduction
The International Monetary Fund and the World Bank have proposed a framework of action to assist in resolving the debt problems of heavily indebted poor countries. In the current formulation of this framework, replenishment of the Enhanced Structural Adjustment Facility (ESAF) has been presented as the centrepiece of the IMF contribution.

The IMF role was described in the brief prepared by IMF and World Bank staff for the April 23, 1996 meeting of the Development Committee:

"The IMF would also be expected to take action that would reduce the present value of its claims on a country, consistent with broad and equitable participation in the framework of this initiative. Various possibilities involving support under the ESAF which might achieve this objective are currently under examination."