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| Japan in reversal on debt forgiveness Japan will forgive yen loans worth 900 billion yen to 32 heavily indebted poor countries in fiscal 2003, departing from a controversial policy under which debtor countries must first repay their loans before Japan offers them matching grants, the Foreign Ministry announced Tuesday. The current system has been criticized by nongovernmental organizations and other major donor countries because it puts a heavy burden on poor countries, which are unable to repay their debts. "The purpose of the current system was to urge them to make self-help efforts, but it has put a burden on them because they have to acquire foreign currency to make repayments," Foreign Minister Yoriko Kawaguchi said at a news conference Tuesday morning. Although the government seeks repayment, many of the countries are financially unable to comply, and the government ends up rescheduling their debt anyway. The introduction of a simple debt cancellation mechanism was recommended in July by Kawaguchi's panel on ministry reform. Starting with fiscal 2003, the Japan Bank for International Cooperation will write off loans totaling 900 billion yen over the next several years, ministry officials said. In a related move, the government is planning to revise its policy platform for official development assistance, which was established in 1992, Kawaguchi said. The revision, likely to be made around summer, comes amid the increasing attention being paid to the link between poverty and terrorism that arose after the Sept. 11, 2001, terrorist attacks in the United States. New aid concepts, including human security and peace building, are also behind the revision, Kawaguchi said. The Japan Times: Dec. 11, 2002 (C) All rights reserved |
