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G8 rules out debt relief for Nigeria, others
By Chinedu Offor
Correspondent, Washington
D.C.
Finance
ministers of the Group of Eight(G8) industrialised countries failed to agree on
a debt cancellation proposal at their meeting in Washington on Sunday,
temporarily dashing hopes of relief for the poorest countries of the world, the
majority of which are in Africa.
Nigeria�s
quest for debt waiver is also being stalled by the deadlock, although many
argue, with some justification, that Africa�s second largest economy has no
grounds for claiming to be poor to warrant cancellation of part or all of its
over $30billion (N4.2 trillion) debt � much of it owed the Paris Club.
The proposal
seeks the sale of gold stockpiles of the International Monetary Fund (IMF),
supported by the U.S. Government; and the payment of debts by wealthy nations,
supported by Britain.
Experts said
an agreement would have lifted most African nations from poverty as they would
have channelled resources currently being used to service debts to development
projects.
According to
sources, the plan collapsed when it failed to win the support of participants
because of "competing national interests".
U.S Treasury
officials were disappointed because they wanted the proposal passed to shore up
the global image of President George Bush as a compassionate leader in the face
of growing anti-American sentiments everywhere, especially in poor countries.
And, if it
had been agreed, it could also have helped to improve the perception of Bush in
an election year when both he and his challenger John Kerry are hardly far
apart in the opinion polls.
It was
learnt that the idea became a victim of the strained relations between
Washington, Paris and London.
"The
French Government was not about to hand President Bush and Prime Minister Blair
a victory, especially because of disagreements over Iraq�, sources said.
France
refused to go along with it, preferring discussions with debtor nations on ways
to manage repayments.
The meeting
is holding amid a security clampdown on Washington, with streets closed,
uniformed and plain clothes officers on the streets and hundreds of protesters
marching.
The meeting
continues today with American officials promising to revisit the debt
cancellation issue before an enlarged meeting of the G8 heads of state and
government.
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