Debt Relief For Ebola-Impacted Countries

IMF Debt Relief Trust Fund to Aid Poor Countries During Health Crises, Natural Disasters

The International Monetary Fund (IMF) is providing $330 million of financing to aid Ebola-impacted countries. The plan includes $100 million of debt relief and grant-like aid for Liberia, Sierra Leone and Guinea. The Fund is also calling on governments to cancel an additional $70 million in debt. The new plan expands a debt relief facility previously used to cancel debt after Haiti's 2010 earthquake. The new expanded facility, the Catastrophe Containment and Relief Trust (CCR), is now a permanent debt relief facility for the world's poorest countries when they experience shocks such as epidemics or natural disasters.

Eric LeCompte, Executive Director of the religious anti-poverty organization Jubilee USA Network releases the following statement:

"This aid is so vital for the countries affected by Ebola. Now we have a permanent debt relief vehicle for when the poorest countries face certain crises. Essentially, a global social safety net is now in place to protect the least developed countries when they experience disasters.

"This new fund is an important, permanent tool in the fight against poverty. It means resources for countries that need them most at the time they need them most.

"Tonight I'm toasting the IMF and the White House. Unfortunately the World Bank has remained silent in the face of this crisis. I pray they follow the IMF's lead."

from here


Patronising? PR stunt? Genuine attempt to ease problems? Better late than never or too little too late? One wonders if and when the IMF or the Ex. Dir. of the the 'anti-poverty' Jubilee USA Network will follow up on exactly where these peanuts end up - look again at the figures. It's like throwing confetti at a wedding.
Now, please, can't we get down to eliminating the root cause of the world's inequalities? Wouldn't that be better for us all?

Outflows Dwarf Money in Health Care and Prevention Budgets

New reports show that the Ebola-affected countries of Liberia, Guinea and Sierra Leone lose an average of $1.4 billion each year to corruption, debt payments and tax evasion. Global Financial Integrity (GFI) calculates the three countries lost about $1.3 billion per year to corruption and tax evasion in the decade leading up to the Ebola outbreak. New World Bank data indicates the countries spent over $80 million on debt payments in 2013, the year the outbreak began. According to the World Bank, the countries spent a total of $270 million on public health in 2012.

"Debt, corruption and tax evasion are part of why people die in West Africa," stated Eric LeCompte, Executive Director of Jubilee USA, a religious development coalition. "The money was there to contain Ebola and save more people from preventable diseases."

Guinea, where the outbreak began, spent more on debt payments in 2012 than it spent on public health. Guinea spent $207 million on debt payments in 2013 and 2012. According to the Financial Times, the three countries owe the International Monetary Fund (IMF) nearly $480 million.

Sierra Leone spent $2.3 million paying off debts since the IMF announced a debt relief plan in November and will spend nearly $2 million more before the end of the year.
The three countries accrued much of their current debt burden during civil wars, dictatorships and one-party rule. US Treasury Secretary Jacob Lew brought Jubilee USA's plan for debt relief to the November G20 meetings held in Brisbane, Australia. The G20 made a financing commitment to the three Ebola affected countries of 300 million dollars in debt relief, grants and new loans. The IMF could announce the financing plan as early as January.

"Winning debt relief and stopping tax evasion provide long term monies for healthcare and development," said LeCompte, who serves on United Nations Expert Groups that address debt and illicit finance. "More people die from preventable diseases annually in these countries than from Ebola."

According to GFI, developing countries lose nearly $1 trillion each year to illicit flows. From 2003 - 2012, Liberia lost more than $900 million annually on average, while Guinea lost more than $300 million. In 2013, the G8 signed a joint declaration calling on the international community to curb corruption and corporate tax avoidance. This past August, during the White House Africa Summit, the Obama Administration announced a committee to make recommendations to address these outflows.

"There's broad consensus that we need to keep money from flowing out of developing economies," added LeCompte. "There's so much the international community can do."

Read more about Ebola debt relief.
Read GFI's report on illicit financial flows.
Read the World Bank's new debt statistics.

from here