Australian PM doubtful on benefit of tsunami foreign debt relief
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Australian Prime Minister John Howard has expressed scepticism about the merits of freezing foreign debt repayments of countries ravaged in the tsunami disaster, saying it would not help victims on the ground. With a debt freeze expected to be one of the major goals for aid agencies meeting with world leaders in Jakarta on Thursday, Howard said he preferred specifically-targeted aid because debt relief was too unfocused. “There is no guarantee that if you do it what is forgiven or what is the subject of a moratorium will end up going in aid, because the debts are not normally owed by people who need the assistance,” Howard told reporters before heading to Jakarta. “They are usually owed by other organisations and you have no guarantee that if you provide a debt moratorium or debt forgiveness that that money ends up where it should.” Canada has announced a unilateral moratorium on debt payments by tsunami-hit countries, while officials from major industrialised nations including the United States, Germany, France and Britain have expressed interest in the idea. |