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Jubilee USA Network Calls For Debt Cancellation for Tsunami Affected Countries

WASHINGTON, DC -- As the death toll mounts in the countries in Asia affected by the Tsunami and as governments prepared for the International Tsunami Summit in Indonesia on Thursday, Jubilee USA Network joined with debt cancellation campaigns from Asia and around the world to call for immediate and unconditional debt cancellation for countries affected by the Tsunami.

The US debt cancellation advocacy group was encouraged by reports that rich governments were considering a moratorium on debt payments by countries affected by the tsunami, and called on the US government to support an expanded version of the moratorium while cautioning that a moratorium must be followed by actual cancellation of debts.

"A moratorium on all debt payments from tsunami-affected countries is needed immediately. This moratorium must go beyond what has been proposed by the UK and Germany which would only apply to Paris Club debt - it must also include stopping payments to the IMF, World Bank, and Asian Development Bank," said Neil Watkins, Co-Coordinator of Jubilee USA Network. "These countries simply cannot be required to pay debts - many of which are unjust, odious, or illegitimate - while facing a humanitarian disaster of such a magnitude.".

The Indonesia-based debt International NGO Forum on Indonesia Development (INFID) insisted in a statement that Indonesia must receive an immediate moratorium on its debt payment but ultimately it "needs more than a debt moratorium. A debt moratorium would allow Indonesia not to pay its debt for a certain period, but it will have to fulfill its obligation to the
creditors in the future. Thus a debt moratorium is simply the debt burden to the next generation."

Binny Buchori, Director of INFID said today: "Every delay in deciding on Indonesia's debt means more lives lost in Aceh and North Sumatra. The international community must tackle the issue this week".

INFID reports that Indonesia's total external debt is upwards of $130 billion, or more than 60% of that country's GDP, which cripples its ability to finance its emergency and recovery program.

Jubilee USA Network also announced today that it has signed onto a letter initiated by Jubilee South and the Asia Pacific Movement on Debt and Development which will be released just before the January 6 Tsunami summit in Indonesia. The letter expresses sympathy and solidarity with the peoples of the countries affected by the Tsunami and states, "In addition to
emergency relief operations and rehabilitation, what we need immediately is unconditional debt cancellation now! Governments should not continue to prioritize debt service and stop paying onerous and illegitimate debts."

Jubilee USA also highlighted the need for debt cancellation for global South countries in Asia, Africa, and Latin America, including dozens not affected by the tsunami. Jubilee USA renewed its call for G-7 Finance Ministers and the IMF and World Bank to support full, 100% multilateral debt cancellation for all impoverished nations, without harmful conditions, at the next
meeting of Finance Ministers scheduled for February 4-5 in London.

Figure 1. Debt Data for Tsunami-Affected Countries

COUNTRIES BADLY HIT BY TSUNAMI
1st number = MULTILATERAL CLAIMS (DEBTS) AS OF END OF 1ST QUARTER 2004
2nd number = BILATERAL CLAIMS (DEBTS) AS 0F END OF 4th QUARTER 2003

Figures do not include private/other types of debt.

in Millions US $

INDIA
29,226.46
17,147.29

INDONESIA
28,948.71
32,443.82

SRI LANKA
4,360.18
4,095.31

THAILAND
2,743.01
8,660.08

MALAYSIA
1,065.21
2,535.35

BURMA
1,087.47
3,534.50

SOMALIA
696.50
516.06

MALDIVES
106.19
6.62

PHILIPPINES
7,924.94
12,283.65

TOTAL
76,158.67
81,222.68


Data from Joint OECD-IMF-WB External Debt Statistics.

Neil Watkins
Interim Co-Coordinator
Jubilee USA Network
(202) 783-0129
http://www.jubileeusa.org