Reuters: Paulson slams "irresponsible" loans to poor states [View All]

[Eugene]

Paulson slams "irresponsible" loans to poor states
18 Sep 2006 02:38:11 GMT
Source: Reuters

SINGAPORE, Sept 18 (Reuters) - U.S. Treasury Secretary Henry Paulson called
on Monday for urgent action to stop "irresponsible" new lending to poor
countries whose debts have just been cancelled.

Paulson did not name names, but China has come under increasing fire in some
circles as one of a new breed of creditor governments that is lending money
on commercial terms to impoverished nations, many of which have recently been
granted debt relief by the international community.

"We are already receiving anecdotal evidence of creditors providing large
loans, the terms of which are unknown, to countries that have recently
received debt relief," Paulson told the Development Committee of the World
Bank and the International Monetary Fund.

"We need effective incentives or penalties to deter irresponsible borrowing
or lending," Paulson added.

-snip-

Full article: http://www.alertnet.org/thenews/newsdesk/SP157791.htm