MEDIA REACTION ON DEBT FORGIVENESS AND IMF, JULY

UNCLAS TEGUCIGALPA 001423

SIPDIS

DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; AND IIP/T/ES
DEPT. FOR PM AND EB/TRA
DEPT. FOR WHA/EPSC, WHA/PPC AND WHA/CEN

E.O. 12958: N/A
TAGS: OIIP KPAO PGOV MASS EAID HO
SUBJECT: MEDIA REACTION ON DEBT FORGIVENESS AND IMF, JULY
06, 2005



2. On 07/05 the San Pedro Sula-based liberal daily "Tiempo"
carried an op-ed by Jose Salomon Perdomo, Director of the
Institute of Scientific Research and Superior Education,
entitled "How to boost Latin American and Caribbean
economies." "The Managing director of the IMF, Rodrigo de
Rato, praised the proposal of the leader of the Group of the
Eight to alleviate the debt of the poorest countries. The
IMF will examine the details and the proposal's
implementation and work with the G-8 to settle on an
agreement."

"The proposal to be presented in the annual meeting of the
IMF and World Bank in September could lead to total debt
cancellation and will allow the countries to accelerate
their poverty reduction programs and increase their capacity
to reach the Millennium objectives."

"It is estimated that the actual resources of the IMF cover
debt relief costs without menacing their financial
capacity."

"The leader of the G-8 also proposed creating a fiduciary
fund to support the poorest countries that face `shocks'
such as in basic product prices. The annual economic summit
of the G-8 will take place in Gleneagles, Scotland, from
July 6 to 8."

Palmer