The New York Times reported that the United States and Britain had reached an agreement on freeing these countries from any obligation to pay the debt. A significant omission from the list is Nigeria, whose external debt is estimated at $36 billion. President Olusegun Obasanjo was in London this week for talks with Blair over the burden.
However, Dr. Ngozi Okonjo-Iweala, the Minister of Finance, said last night that Nigeria's hopes had not been completely dashed as the country's campaign for debt relief was not under the approach of Highly Indebted Poor Countries (HIPCs) but under the EVIAN approach.
Okonjo-Iweala said Nigeria was not seeking 100% debt cancellation. "What we are saying is that we too deserve consideration under another approach set up by the G8 countries called the EVIAN approach. It was decided at the G8 Heads of State summit in Evian, France, two years ago. Under this approach, countries' debt situation and the possibility for debt forgiveness will be considered on a case by case basis, depending on the peculiar circumstances of each country and the country's ability to demonstrate progress with economic reform", she said.
CNN reported yesterday that British officials said they were confident the world's most powerful finance ministers would reach a historic deal at their meeting in London this weekend, although some differences remain between the G8, major industrialized nations. With the deadline of the G8 summit in Gleneagles, Scotland, just a month away, finance ministers meeting in London in the last two days were trying to find common ground. In addition to the United States and Britain, the G8 nations include France, Germany, Italy, Canada, Japan and Russia.
UK Prime Minister, Tony Blair, who is the current G8 president, has demanded that poor countries' debts be cancelled and their aid doubled. He and U.S. President George W. Bush agreed this week in Washington that help on debt should be given only to countries ready to tackle corruption.
The number of countries to be helped is yet to be agreed upon. Blair's spokesman said earlier this week that about 25 countries would benefit, while charities say 62 countries need urgent debt relief.
France, Germany and Japan have their own proposal that would mean debt relief for only five countries.