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| Sunday, 9 January 2005 |
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G7 backs debt freeze for tsunami-hit nations: Britain LONDON, Saturday (AFP) Finance ministers from the Group of Seven industrialised nations have agreed to support the suspension of debt payments by countries affected by the tsunami disaster, the British treasury announced Friday. The proposals will be put forward at a meeting of the Paris Club of 19 creditor nations in the French capital next Wednesday. The G7 also called on the World Bank and International Monetary Fund to complete an assessment of the reconstruction and financing requirements of the countries affected by the tsunami disaster, according to a statement from Britain, which holds the rotating G7 presidency. As well as the backing for a moratorium on debt payments, G7 ministers have agreed to consider "all appropriate measures" for further assistance for these countries when they meet in London on February 4-5. The G7 members, which together with Russia make up the G8, called on the IMF, World Bank, Asian Development Bank and other multilateral institutions to provide financial assistance to the tsunami-affected countries. They also called for urgent consideration of an early-warning system for tsunamis in the Indian Ocean. "We must ensure that those countries are not prevented from paying for essential reconstruction because they are having to fund the servicing of their debts," said British Chancellor of the Exchequer Gordon Brown. "So, for afflicted countries that request it, the G7 is proposing an immediate suspension of debt repayments. "And depending on the conclusions of the needs assessments, I believe that the G7 and Paris Club must also stand ready to consider all options for further assistance," he said in a statement. Brown said on Tuesday that the proposal aimed to freeze about three billion dollars in annual debt repayments from the affected countries. Besides Britain, the G7 comprises Canada, France, Germany, Italy, Japan and the United States. |
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