18 September 2003 

New Jubilee Research Report shows that 100% World Bank and IMF debt cancellation is possible

In a new report commissioned by the Irish Debt and Development Coalition (DDCI), Jubilee Research at nef challenges the IMF and World Bank's assertion that they are unable to cancel 100% of the debts owed by the Heavily Indebted Poor Countries (HIPCs) Using rigorous financial analysis, the author Sony Kapoor shows that both the IMF and World Bank have ample resources to cancel all HIPC debt, and that this could be done without in any way jeopardising their normal operations, or threatening their credit ratings.

The research recommends specific mechanisms for IMF/World Bank to deal with the 'debt issue' as follows:

• That IMF should sell some of its gold reserves - and use the proceeds to bankroll the full cancellation of HIPC debt.
• That the World Bank use a combination of retained earnings and future income allocations to fully bankroll the total cancellation of HIPC debt owed to the World Bank.

The research shows that neither of the options referred to above will impact on present or future credit ratings of either organisation.

This report goes much further than similar reports produced before in challenging the view put forward by the IMF and the World Bank.

For the full text of the report,  click here

For more information on the Debt and Development Coalition Ireland, click here