African leaders ask for help

2005-04-16 11:14

Washington - The African members of the International Monetary Fund feel their concerns are being neglected by the organisation and have asked IMF Director Rodrigo Rato to help remedy the situation.

Making their appeal on Friday ahead of the spring meetings of the IMF and the World Bank, the African members demanded Rato do all he can to dismantle trade barriers and apply more pressure to bring enough money to the fight against poverty.

The African leaders are pushing the IMF to fully forgive the foreign debt held by the continent's poorest countries. Even countries that the IMF ranks as middle-income are carrying some debts they cannot pay.

In addition there are many conditions that the IMF attaches to financial help that are politically sensitive and often difficult to implement.

The IMF's image in Africa suffers because people there see no reduction in poverty, although programmes to fight poverty are in place, the African leaders said in a statement.

Debt relief is one of the topics to be discussed at the meetings, but observers say no resolution is expected.

The governors also expressed concern over considerations within the IMF to require fees for technical aid. Such plans are to be discussed as part of a new strategic alignment that Rato plans. The former Spanish finance minister along with most industrial countries want the IMF in the future to grant less credit and act more as an advisor.

The African leaders represent 43 of the 184 IMF member countries, but have only 4.4% of the voting rights, which are allotted based on a country's contribution. The United States has 17% of the IMF's voting rights, followed by Japan with 6.13% and Germany with 5.99%. - dpa

- SAPA