IMF grants debt relief to 19 poor countries

23 December 2005

Washington, USA, 23 Dec – The executive board of the International Monetary Fund (IMF) has agreed to pardon debts to 19 of the world’s poorest nations, including Mozambique, following the deal struck by the Group of Eight (G8) rich states in July.

The G8 accord centered on writing off debts to multilateral organizations, such as the IMF, World Bank and the African development Bank, of highly-indebted countries.

Mozambique, which has already had large amounts of its bilateral debts pardoned, is among the 19 poor countries to benefit from the IMF move with its multilateral debt service payments being cancelled.

In a statement released in Washington, IMF Executive Director Rodrigo Rato said that the debts cancelled amounted to 3 billion euros.

In Maputo, IMF representative Perry Perone confirmed that all Mozambique’s debts to the world financial body were being cancelled due to major advances made in the combat of poverty and improvements in the management of state finances. (macauhub)