House Votes to Expand Debt Relief to 25 More Poor Countries

[babylonsister]

House votes to expand debt relief to more poor countries

House votes to expand debt relief to 25 more of the world's poorest countries

JIM ABRAMS
AP News

Apr 16, 2008 14:47 EST

The House voted Wednesday to expand by some 25 countries the list of those poorest states eligible for debt relief, allowing them to divert scarce resources from loan repayment to health and education programs.

The legislation instructs the administration to begin talks with international financial institutions such as the World Bank on an agreement allowing the new countries to receive debt cancellation.

To be eligible the countries, mainly from Africa, must be committed to reducing poverty, holding free elections, practicing good governance, combating corruption and rejecting terrorism and human rights violations.

Since 1996, when industrialized countries and the financial institutions came together on the Heavily Indebted Poor Countries Initiative, more than 30 nations have received some form of debt relief equal to about $80 billion.

Rep. Maxine Waters, D-Calif., a chief sponsor of the legislation, said that under this program Uganda has been able to divert $58 million from debt repayments to addressing electricity shortages, malaria and contaminated water, while Zambia has shifted $24 million to eliminating fees for health care in rural areas.

more...

http://talkingpointsmemo.com/news/2008/04/house_votes_to_expand_debt_rel.php

[jwirr]

1. Good that is a step toward addressing the food shortages that are

happening. Now many of those countries can stop exporting food crops to pay these bills and feed their own people instead. Way past time - however, it will probably be shot down in the Senate or for sure in the WH.

[applegrove]

2. Good. Finally the world wakes up to Africa.