Brown welcomes G7 agreement on tsunami debt suspension
Gordon Brown has warmly welcomed the agreement of the G7 countries to suspend the collection of debt repayments from the countries hit by the Asian tsunami.
Estimated deaths are now standing above the 150,000 mark with a further five million people displaced.
Foreign Secretary Jack Straw also confirmed today that the total number of British fatalities is likely to rise around to 400.
This afternoon the G7 agreed that it would suspend all debt-collection and called on the World Bank and the International Monetary Fund to urgently complete a needs assessment of the reconstruction and finance required.
It also supported calls for the “urgent consideration” of an early-warning tsunamis system for the Indian Ocean.
The announcement had been much trailed and came whilst the Chancellor was touring the north of England.
Speaking today, Mr Brown said: “In the wake of this tragedy, the true test of the international community will be how we can fund and assist both the immediate day-to-day emergency services needs but also the long-term reconstruction of the countries affected by the tsunami.
“We must ensure that those countries are not prevented from paying for essential reconstruction because they are having to fund the servicing of their debts. So, for afflicted countries that request it, the G7 is proposing an immediate suspension of debt repayments.
“And depending on the conclusions of the needs assessments, I believe that the G7 and Paris Club must also stand ready to consider all options for further assistance. I will be discussing this with my G7 colleagues at our next meeting on 4-5 February.”
Mr Brown will also be urging other creditors to the region to suspend debt repayments when the Paris Club meets next week.
The announcement from the G7 is a boost to Mr Brown as he has been publicly urging such a measure since the disaster struck.
