VATICAN CITY (CNS): The Vatican has hailed an agreement by the world’s richest nations to cancel US$40 billion of debt owed by some of the world’s poorest countries, but said the move should be followed by an increase in development aid.
A statement on June 14 by the Pontifical Council for Justice and Peace said the debt cancellation should be “the first of many steps” taken to brighten the future of the world’s poor.
On June 11, finance ministers from the Group of Eight industrialised nations — the United States, Britain, Japan, Canada, Russia, Germany, Italy and France — met in London and agreed on the debt write-off package.
Eighteen poor countries, most of them in Africa, will benefit immediately from the debt cancellation.
The plan could eventually be extended to 20 other countries if they submit economic adjustment programs.
The Vatican said it was important, however, that the funds freed by debt forgiveness now be used to provide necessary public goods, such as clean water, basic health care and education.
African bishops also reacted positively to the news.
Bishop Michel Cartateguy of Niamey, Niger, said Church leaders there were “overjoyed with the news” of the debt cancellation.
