Madam, - Your edition of June 11th carried a report on the G8 debt deal for the poorest countries. The outcome is bitterly disappointing given the hope generated by reports that proposals for complete debt cancellation would be discussed by the G8.
All that is on offer is an extension of the already failing Heavily Indebted Poor Countries' Initiative for a further two years. Although this initiative has delivered some debt reduction, it has been totally inadequate.
It is a scandal that the poorest countries continue to pay more in servicing debts to rich creditors than on their people's health and education. Senegal, for example, spends twice as much on debt payments as on health. Mali, Niger and the Gambia spend more on debt than on education and are unable to provide primary education for all their children.
It is striking that while the IMF supports cancelling almost all of Iraq's $120 billion debt (owed largely to a range of countries), it refuses to budge on debt owed to itself by the poorest countries. Clearly Iraq's debt is odious. It arises from loans to an oppressive regime which no successor government should have to repay. But there is an equally strong case for cancelling the debt of the poorest countries, which is being repaid with the health and welfare of their people.
We commissioned research last year which shows that the IMF is sitting on one of the biggest gold reserves in the world and has more than enough resources to cancel the $5 billion debt owed by these countries.
We were pleased to see from your report that the Taoiseach raised the issue of total debt cancellation at the G8 Summit. Now that there is a wide crack in G8 opposition to debt cancellation, we hope the Irish Government will at last give whole hearted support to total cancellation of the debts of the poorest countries. - Yours, etc.,
JEAN SOMERS,
Coordinator,
Debt & Development
Coalition/Jubilee Ireland,
All Hallows,
Grace Park Road,
Dublin 9.