Twenty-Two 'Poorest' Nations Get Debt Relief

WASHINGTON, Dec. 22 (AP) - The World Bank and the International Monetary Fund said Friday they exceeded the goal set by the major industrialized nations to get 20 of the world's poorest countries into a special debt relief program by the end of the year.

With just hours left before their holiday break, the boards of the two lending organizations were putting the final touches on programs for the African nations of Rwanda and Guinea.

In a joint statement, World Bank President James Wolfensohn and IMF Managing Director Horst Koehler said these efforts ``will lift some $34 billion in debt service obligations of 22 countries, 18 of them in Africa'' over the coming years. Four countries are in Latin America.

Wolfensohn and Koehler said once the 22 nations provide the IMF and the bank with poverty reduction strategies and develop economic reform programs, they will become eligible to receive the full benefits of debt relief.

This should amount to a reduction of around half of their foreign debt burdens, rising to two thirds once government and commercial lenders fulfill their own debt pledges.

Started by the two institutions in 1996, the Heavily Indebted Poor Country initiative had been criticized by the major industrialized nations as too slow, putting up too many economic hurdles before a country could qualify.

The United States and the six other G-7 nations called last year for the program to be speeded up and set 20 countries by the end of 2000 as the objective.

Both lending institutions and the industrialized nations came under pressure to accelerate the program from a diverse group called Jubilee 2000 that included religious leaders, rock stars and international relief organizations dedicated to securing debt relief to coincide with the new millennium.

However Jubilee 2000 has complained that 16 of the 22 countries would still be spending more on debt payments than on health.

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