POLITICS: Britain Proposes Debt Relief to Nations, page 1

The United Kingdom will provide debt relief to some of the worlds poorest counties according to Prime Minister Tony Blair. Other officials has stated that developing countries are crippled by their debt and cannot use the money to improve conditions there. The government has indicated that they will make the debt payments to the World and African Development Banks for these countries. These payments will include the United Kingdoms portion of the debt only. Furthermore, they have urged other countries to follow their example in this regard.

news.yahoo.com
BRIGHTON, England - Britain will provide more debt relief for the world's poorest countries and challenge other rich countries to do the same, Prime Minister Tony Blair's government said Sunday

Treasury chief Gordon Brown said many developing countries were crippled by servicing their debt and could not invest in their infrastructure.

"We will pay our share of the multilateral debt repayments of reforming low-income countries," Brown said in a statement, released by the Department of International Development.

"We will make payments in their stead to the World Bank and African Development Bank for the portion that relates to Britain's share of this debt. We do this alone today but I urge other countries to follow so that over indebted countries are relieved of the burden of servicing all unpayable multilateral debt."

Brown was scheduled to reveal further details in a speech later Sunday to a "Vote for Trade Justice" event at a church in Brighton, the coastal town where the governing Labour Party is holding its annual conference.

Britain holds about 10 percent of the total debt owed to the World Bank and other development banks, or about 7 percent of all the debt of the world's poorest nations.

Britain's Development Secretary Hilary Benn said poor countries needed "significant additional resources" to "lift people out of poverty, get children into primary schools and improve basic health."

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The United Kingdoms total debt holding in the World Bank is about 10%. To be eligible, the countries have to show that the money will be used to meet the goals put forth in the 2000 Millennium Summit. These included such things halving the number of people living below the poverty level, ensuring children have elementary school education, clean water, and halting the AIDS epidemic. All of these are hoped to be accomplished by 2015.