UN official calls for cancellation of debts owed by poorest countries

The senior United Nations official advocating for the poorest 50 Member States today urged the seven richest countries to forgive their debts, the annual payment of which exceeded export earnings, and permit them to use their resources for development.

"The 50 least developed countries (LDCs) are unduly burdened by heavy debt. These countries have been facing the challenge of a huge, unsustainable debt service payment," said Anwarul K. Chowdhury, the UN's High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.

"In fact, many of them are paying more towards debt servicing than their earnings in exports. Consequently, their economic growth and development has been stunted. Only debt cancellation would free the resources needed in LDCs for investment in health, education and for fulfilling basic needs of their populations."

His appeal came as finance ministers from the seven richest, most industrialized countries gathered in London to prepare for the G8 summit, which would include the Russian Federation, next September in Gleneagles, Scotland. The United Kingdom is this year's chair of the group.

British Prime Minister Tony Blair has pledged to put a spotlight on Africa's problems during his chairmanship.

"I believe that an agreement to cancel the debt of the 50 least developed countries, 34 of which are in Africa, will go a long way in helping these most vulnerable countries become self-reliant members of the international community," Mr. Chowdhury said.