Daily Press Cuttings

 

Tuesday 31^st August

IHT: Ecuador \ debt: As Ecuador begins the struggle to sell a restructuring plan for $6 billion of its debt to global investors, Wall Street is calculating how much holders of this debt might lose. At the same time, investors are wondering whether this process will set a precedent for other debt negotiations between troubled countries and private creditors. Ecuador's restructuring could lead to the first ever default on the popular Brady bonds that became the vehicle for restructuring debt in the late 1980's.

FT: Ecuador \ debt: With Ecuador's move to restructure its Brady bonds, the tiny country of 12m people has been thrust into the centre of a fierce debate between public and private creditors over who should take responsibility when a country is unable to meet its obligations. The outcome of that battle will help determine the shape of the new global financial architecture. Official lenders such as the IMF and Paris Club have increasingly been demanding that private creditors take some responsibility for their credit.

Times: Russia \ IMF: The IMF official in charge of dealings with Russia says there is no evidence that IMF loans have been stolen but admits that the country may have tricked the institution into speeding up its aid by using an offshore account in the Channel Islands.

Africa \ debt: Stuart J. Burgess, President of the Methodist Conference, writes that `Africa will be forgotten by the rich countries of the world unless urgent action is taken. The cancellation of debt to poor countries must be the first step and we applaud the British Government for action already taken. The West has taken much from Africa in the past. It is time for us to invest heavily in the poor countries in order that people may have dignity in their lives.'

Guardian: Russia \ IMF: If powerful kleptocrats have emerged in Russia, this is not because Russians are uniquely prone to dishonesty and corruption. It is because western advisers have advocated policies which created the conditions for any rational profit maximiser to grab, grab and grab. The Russian economy has had eight years of slow motion looting, for which western governments and their policy recommendations are as guilty as the Russian thieves.

Congo peace deal: Rival rebel factions are today finally expected to end the country's year-long civil war.

Express: East Timor \ independence referendum: The people of East Timor flocked to polling booths for a referendum widely expected to lead to independence from Indonesia after 24 years. More than 95 per cent of voters turned out.

Monday 30^th August 1999

Guardian: Cologne agreement: In a letter to the editor, Glenys Kinnock MEP highlights the `critical role' of the G7 debt agreement `in determining how we respond to the plight of the world's poorest countries.' However, `we need evidence that the G7's fine worlds will be matched by the finance which is essential to the success of their plans. It's essential that a new way is found to finance the Cologne proposals and analyse the impact of these proposals on the poor and their ability to meet international agreed development targets. Much progress has been made [on the debt issue] and our own government has been instrumental in moving arguments forward. All the HIPC countries deserve now to know that G7 leaders and finance ministers can come up with the money needed to deliver their promises. Millions are waiting for a signal from the rich industrialised countries that intention will be matched by action.

Socialist Review, September 1999: Debt: In an issue entitled `Debt Crisis – who pays?', Joe Hanlon, policy advisor to Jubilee 2000, Mark O'Brien and Susan George explain `why the world's rich keep millions poor'. An extensive examination of the causes and consequences of the debt crisis is presented.

Saturday \ Sunday, 28 – 29th August

FT: Kenya \ corruption: A full report on white politician Richard Leakey, who has been made head of Kenya's civil service, and is charged with ridding it of corruption and inefficiency.