Brussels, 07/07/2000 (Agence Europe) - The European Commissioner for Development, Poul Nielson, signed a financing convention in Brussels on Friday, releasing a European contribution of over one billion euro to the "reinforced initiative for heavily indebted poor countries" (PPLE II), launched the World Bank and the IMF. Of this amount: a) $680 million, managed by the Trust Fund of the World Bank, is earmarked for development banks in African and Caribbean countries, b) 54 million will transit through development banks of the countries of Latin America and East Asia to enable them to finance their share of debt reduction, c) 348 million euro is intended to reduce the debt that African and Caribbean countries still have vis-à-vis the EU.
A initial payment of 300 million euro to the Trust Fund will be immediate. The funds come from EDF resources thereby showing exceptional south-south solidarity", Commission sources stress.
The EU thus becomes the largest donor to the Trust Fund by assuring two-thirds of the funding announced by the international community in 1999. "If other large donors do not finance their share, the EU would carry a disproportionate share of the burden", Commissioner Nielson declared, hoping for the announcement of further payments at the G8 Summit, to be held in Okinawa on 19 July.