G8 Finance Ministers Cancel Some External Debt of Honduras and Other Poor Countries

On June 11, finance ministers from the G8 countries˜the United States, Britain, Canada, France, Germany, Italy, Russia and Japan˜agreed to write off the external debt owed by 18 poor countries to international lending agencies such as the IMF. The 18 countries, which include Honduras, have completed the IMF-World Bank HIPC (heavily indebted poor countries) Initiative, in which countries must prove they are pursuing economic stability and market-friendly policies. The G8 finance ministers said these conditions would remain in place. Debt relief activists applauded the decision, but cautioned that more must be done in order to relieve poverty in Global South countries. [OneWorld, 6/13/05]