Contact:
50 Years (DC): Sameer Dossani +1 202 463 2265 (office) :: +1 202 340 0216 (mobile)
Solidarity Africa (Nairobi): Njoki Njehu / Soren Ambrose +254 723 229 426 :: +254 723 151 541

IMF Backs Down on New Economic Criteria for Debt Cancellation in the Face of Tremendous Opposition, Approves Debt Cancellation for 19 Countries
Advocates Welcome Decision; Continue to Push for Extension of Debt Deal to Include More Countries, De-Link Cancellation from Economic Conditions

The board of the International Monetary Fund (IMF) today announced that it would cancel 100% of the debts owed to it by 19 countries. These include 17 of the 18 countries that had been promised cancellation under the July 2005 G8 plan, and Cambodia and Tajikistan. Debt cancellation advocates around the world hailed the news as a victory for a decade-long campaign process and expressed hope that the World Bank would follow suit.

"This is a very firm step forward not only for debt cancellation activists the world over, but represents a glimmer of real hope for the millions of impoverished people living in these countries," said Sameer Dossani, Director of the 50 Years Is Enough Network, "After decades of paying back often illegitimate debt contracted under dictatorships for dubious projects, and siphoning away critical funds from social spending and development, these countries now have the opportunity to invest the much-needed resources into their societies."

However, campaigners also cautioned that future debt cancellation could come with strings attached, citing inside information that indicated that earlier this week the IMF was considering denying cancellation to Ethiopia, Madagascar, Mauritania, Nicaragua, Rwanda, and Senegal. "Recently, the IMF had made noises about tying cancellation to more economic conditions, particularly in the form of a final economic 'test' for countries before receiving cancellation," said Hope Chu, Communications Coordinator of the 50 Years Is Enough Network, "This threatened cancellation for six countries desperately in need of it. Under pressure from people around the world - tens of thousands of emails and phone calls in the U.S. alone - the IMF has backed down from that stance for the time being but observers and advocates should remain vigilant. Mauritania is still excluded from the IMF decision, a disastrous blow to an impoverished country."

Njoki Njehu, Director of Solidarity Africa Network in Action (Kenya) emphasized the need to extend debt cancellation to countries left out of the original G8 deal saying, "This is a victory for the people in the 19 countries that will finally get a chance to free themselves from the slavery of debt. However, there are dozens of other countries that need 100% multilateral debt cancellation which are left out of this deal. We will continue to campaign for full justice for impoverished peoples oppressed by illegitimate debts." Njehu cautioned, "We must also guard against an erosion of this deal by the IMF itself or by other multilateral institutions. The struggle continues; our job is not done."

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