|
Washington, DC - The House Financial Services Committee today approved legislation directing the Administration to begin negotiations for an agreement within the World Bank, the International Monetary Fund and the Paris Club of bilateral creditors to cancel the debt of up to 24 of the world’s poorest countries.
HR 2634, the Jubilee Act for Responsible Lending and Expanded Debt Cancellation of 2008, which passed the Committee by voice vote, builds on previous successful efforts by the Committee over a number of years to provide debt relief for the world’s poorest countries as an essential component in the overall effort to help alleviate the poverty and misery that exists in many parts of the world.
“Debt cancellation has proven to be effective at freeing up resources for poverty reduction, and I am proud to report that debt relief has made a real difference in the lives of millions of impoverished people around the world,” said Financial Services Housing and Community Opportunity Chairwoman Maxine Waters, the author of the legislation. “With the passage of the Jubilee Act today, we will be able to continue our efforts and enable additional needy and deserving poor countries to benefit from the cancellation of their debts.”
The legislation also calls for measures to help ensure that nations that benefit from debt cancellation do not acquire new debt and thus return to square one, including prioritizing grants over lending in future development assistance and adoption of a legal framework to prevent some creditors from profiting from debt relief by providing high-cost loans to countries that are newly debt-free..
The measure is expected to move soon to the floor for consideration by the full House. The Senate is scheduled to hold hearings on the Senate version of the bill later this month.
For more information, click here: H.R. 2634
|
