10 Nov 2006
IMMEDIATE ACTION REQUIRED TO RELIEVE DEBT IN THE AMERICAS
The Social Justice Committee calls on Brazil to take action in support of debt relief for Bolivia, Guyana, Nicaragua, Haiti, and Honduras before December 31,2006. These countries suffer from extreme poverty, which is related to the debt burden imposed on them by major multilateral creditors. Whereas creditors such as the International Monetary Fund and the African Development fund have agreed to cancel 100% of the debts owed by their most impoverished debtors, the Inter-American Development Bank (IADB) has failed to provide debt relief to its debtors that are most in need. Action leading to the relief of this debt has been delayed by Brazil, which is unnecessarily concerned about the financing of the debt cancellation.
Some things to consider:
- All five of the above countries owe well-over 50% of their debts to the IADB, amassing a combined debt of over 3.5 billion dollars.
- Instead of sufficiently budgeting for social programs that serve to fight poverty, these countries are forced to repay millions of dollars in debt. For example, in 2005 Bolivia was forced to expend 30% of its national budget on repaying its debts- money that would have been better spent on providing basic healthcare and education to the population.
- The IADB can undoubtedly withstand this debt cancellation, as it is a powerful institution with US $101 billion dollars in capital. Consequently, Brazil’s concerns are not justified in impeding the debt relief initiative.
The leaders of these countries have requested that relief be implemented by December 31, due to the urgent nature of this issue. Brazil must be pushed to take action and agree to a debt-relief program for these countries. Without debt relief, it is unlikely that any of these countries will be able to break out of the vicious cycle of debt and poverty. Write to the Brazilian ambassador today, and urge him to push the Brazilian government to take immediate action to relieve the IADB’s debt.
Include in your letter:
- Who you are and where you are writing from
- That you are concerned about the extreme poverty that exists in Nicaragua, Bolivia, Guyana, Haiti and Honduras.
- That you think it is important that the IADB cancel its debt to these countries, and that it is important that Brazil take immediate action to push this issue forward.
- Your signature, and make sure to add your address so that the ambassador will know where he can write back to you
Send your message to:
His Excellency Valdemar CARNEIRO LEÄO (M) Ambassador
Embassy of the Federative Republic of Brazil - Ottawa, Canada
450 Wilbrod Street
Ottawa, Ontario K1N 6M8 Canada
Tel: (613) 237-1090 Fax: (613) 237-6144
mailbox@brasembottawa.org