PLANS to reduce the burden of debt repayments on some of the world's poorest nations would go ahead as soon as possible, Mr Michael Camdessus, the managing director of the International Monetary Fund said yesterday.
Despite Mr Camdessus's confidence, there was still uncertainty yesterday about how the initiative will be financed.
According to the IMF, a four-year gap in the funds available for its contribution, a hole of about $1.8 billion (£1.12 billion) from 2000 to 2004, will be met partly by additional contributions from individual member countries.
If that proved insufficient, the IMF would consider selling five million ounces of its gold reserves and using the interest revenues on investment of the profits.
However, Mr Robert Rubin, the US Treasury secretary, said the administration would only discuss an additional American contribution if the gold sale went ahead.
Germany and Switzerland have been steadfastly opposed to the sale of any of the IMF's gold reserves.
Mr Rubin said the US supported proposals for the Paris Club - the individual governments owed money by developing countries - to increase its contribution to debt relief by writing off up to 80 per cent of debt owed, up from the current 67 per cent concession.
Subject to negotiations, the IMF and World Bank are likely to contribute about $2 billion each to the initiative, with the balance coming from the Paris Club members.
