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Advocates Demand the IMF Keep Its Promise on Debt Cancellation for Impoverished Countries


Protesters to IMF: "Don't be the Grinch Who Stole Debt Cancellation"

ATTN PHOTO EDITORS: Advocates will stage a theatrical event in Murrow Park, Tues. Dec. 20 at Noon - 18th and H Sts NW, Washington, DC

WASHINGTON - On Tuesday, leading advocates for impoverished country debt cancellation will call on the International Monetary Fund (IMF) to not be the Grinch who stole debt cancellation. This takes place ahead of the IMF's Wednesday Board meeting which will finalize details of a debt cancellation deal for 18 countries. Six of these countries - fully one-third of those promised debt cancellation - are now in danger of being denied cancellation by the IMF.

What: Street Theater with IMF Grinch

Where: Murrow Park, outside IMF/World Bank Headquarters; 18th and H Sts, NW, Washington DC

When: Tuesday, December 20, 2005, 12:00-12:15pm

In July 2005, world leaders promised immediate and irrevocable debt cancellation for 18 countries. The IMF is now back-tracking on this commitment. This month the Fund published its plan for implementing debt cancellation. Part of the plan is a final economic test these countries must meet, even though these countries have already complied with decades of onerous conditions as requirements for debt cancellation.

The excuse the IMF is giving for the delay is that the six countries are said to be "off track" with IMF economic programs, despite recent favorable economic reviews by the IMF itself. This move threatens access to debt cancellation for six countries. The six countries that may see their debt cancellation delayed include Ethiopia, Madagascar, Mauritania, Rwanda, Senegal and Nicaragua.

Despite the fact that these debts were largely illegitimate in the first place - the result of irresponsible lending to despotic regimes and for failed projects - these extremely impoverished nations have been paying the IMF at the expense of desperately needed investment in health, education, and clean water. Further delays to debt cancellation will cost lives.

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