This web site is not being updated - use Jubilee Debt Campaign instead
The USA (along with Germany and Japan) were blocking debt relief that would make Ethiopia’s debt burden sustainable (by World Bank criteria!). Due to the collapse of coffee prices and changes in interest rates Ethiopia’s debt burden would be considered far too high (the debt to export ratio would be 220% against a maximum set by the WB of 150%). The USA was blocking the additional $700M debt relief recommended by WB/IMF.
After sustained campaigning the debt cancellation for Ethiopia and Niger was finally approved in April 2004. The campaigning secured a further $1.2bn of debt relief, a massive achievement.
Blocking the top-up funding will cost
Ethiopia $35m/annum which could be spent on Poverty reduction programs.
For a full
explanation see Jubilee Research http://www.jubileeresearch.org/analysis/reports/ethiopia130204.htm
last updated 11 Juni 2004