BRITAIN: Britain's Chancellor of the Exchequer has pledged to lead attempts to freeze debt repayments from countries stricken by the Indian Ocean tsunami disaster. Mr Gordon Brown said he believed a decision would be taken next week by the so-called Paris Club of creditor nations to agree a moratorium on pay-outs by the countries hit by the St Stephen's Day disaster.
The worst-hit countries, such as Indonesia, Sri Lanka and Thailand, could together escape about £1.6 billion (€2.3 billion) worth of debt repayments under Mr Brown's plan.
He said: "Our proposal is that, with immediate effect, the Paris Club should expect no debt repayment from afflicted countries. That would then lead to an analysis of the needs of these countries, with the possibility of some debt relief, at the same time ensuring that the money goes to the people in greatest need."
The Paris Club of creditor nations is due to meet on January 12th. G7 finance ministers will then also discuss the debt proposal at a meeting in London on February 4th and 5th.
Britain also wants to see an offer of emergency assistance from the IMF and a "substantial" donation of funds for reconstruction from the World Bank, Mr Brown said. "Therefore, the $2 billion figure which has been quoted as the world's contribution to deal with both the problems of first aid and reconstruction will rise very substantially."
Mr Brown said the scale of the emergency in south Asia must not be allowed to divert the world's attention away from the needs of other underdeveloped areas, such as Africa.
"We never want to be in a position again where we have to choose between emergency aid and tackling the underlying causes of poverty. The world ought to be able to do both."
Britain's Development Secretary, Mr Hilary Benn, said: "This is a desperate situation which requires us all to do whatever we can to help the countries affected get back on their feet."
A spokesman for Oxfam, Mr Phil Bloomer, welcomed Mr Brown's proposal of a debt moratorium. Last year Sri Lanka, Indonesia and Thailand paid out €14.84 billion on debt repayment and the total debt burden for the countries affected is €223 billion. "It would be unforgivable for rich countries to continue to demand repayments in the face of such widespread devastation." - (PA)