World Bank agrees on 37 bln usd debt relief plan
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The World Bank has approved debt relief totalling 37 bln usd under its part of a G8 initiative to ease the financial burden faced by some of the world’s poorest nations. The decision still needs to be approved by the Bank’s International Development Association, its main lending arm,, Agence France-Presse reported. World Bank chief Paul Wolfowitz hailed the agreement by the organization’s board of directors, which should free up much-needed funds in the countries for health and education spending. ‘This is a historic agreement combining increased financing with debt relief, which will help poor countries meet the (UN) Millennium Development Goals,’ he said in a statement. Most of the debt owed by the world’s poorest 40 countries - which now stands at more than 56 bln usd - is owed to the World Bank, with the rest owed to the International Monetary Fund and the African Development Bank. |