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Summary Analysis of the June 11, 2005 G8 Debt Proposal
On June 11, Finance Ministers from the G8 countries announced a debt remission proposal that would cancel multilateral debts owed to the World Bank, the International Monetary Fund (IMF) and the African Development Bank's African Development Fund (AfDF) by 18 low-income countries.

The G8 proposal offers 100% debt stock cancellation for debts owed to three multilateral financial institutions for the 18 countries that have reached their 'completion points' through the Heavily Indebted Poor Country (HIPC) Initiative. A further 9 HIPC 'decision point' countries, who have not completed or have stalled in their World Bank/IMF programs, might qualify in the near term. The deal could also potentially be extended to the 11 remaining HIPCs that have not yet reached their decision points.

April 8, 2005

2005FIN153718

Mr. John Mihevc and co-signatories
Chair
Halifax initiative Coalition
104-153 Chapel Street
Ottawa, ON KIN 1H5

Dear Mr. Mihevc and co-signatories:

Thank you for your correspondence of January 28, 2005 regarding debt relief, additional financing and other development issues. I apologize for the delay of my reply.

PDF Letter available here

Version PDF française disponible ici

January 28, 2005

The Honourable Ralph Goodale M.P., P.C.,
Minister of Finance
140 O'Connor Street
Ottawa, ON K1A 0G5
Fax: 995-5176

RE: Canadian CSOs Call for Leadership to Secure Full and Unconditional Cancellation of Poor Country Debts

Dear Minister Goodale,

The next few months offer an historic opportunity for Canada to take leadership among the G7 Finance Ministers to consider genuine and permanent solutions to the problems of debt and development, especially as they affect Africa.

Going Beyond the HIPC Initiative: Another Pathway to Achieving Freedom from the Burden of Debt

“Addressing Unsustainable and Illegitimate Debt—Strategic Options for Civil Society”

Rt. Hon. Jean Chrétien
Prime Minister of Canada
Office of the Prime Minister

The Problem
The on-going debt crisis of developing countries is integral to the perpetuation of an unjust economic system, one that concentrates wealth and power in the hands of a few. EVERY SINGLE DAY in 1999, $128 million was transferred from the poorest countries to the richest in debt repayments. For every one dollar in aid to developing countries, more than seven dollars comes back to rich countries in the form of debt servicing.