| G7 fails to agree on debt relief |
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 The world's most developed nations have reaffirmed the need to provide debt relief to poor countries. After talks in Washington, the G7 finance ministers said they were prepared to offer up to 100% relief on a case-by-case basis.
They also promised to undertake "vigorous action" to address global economic imbalances and foster growth. But they failed to announce any concrete measures on how to do it. Development lobby groups criticised the G7 for "yet another missed opportunity" to deliver the debt cancellation they promised in London in February. The finance ministers' joint statement came after talks hosted by US Treasury Secretary John Snow and Federal Reserve Chairman Alan Greenspan. Ministers and their central bank governors said high oil prices were hampering economic growth, but the outlook for 2005 pointed to "solid growth". The G7 comprises the US, Japan, Germany, France, the UK, Italy and Canada. UK proposal The ministers described their discussions as preparation for the G8 summit - the G7 plus Russia - in Britain in July. But they made no mention of a British proposal under which the International Monetary Fund (IMF) would sell some of its gold reserves to cancel the debt owed it by poor countries. "How many children have to die before these seven men in suits develop a sense of urgency?" Jonathan Hepburn, of Oxfam International, told the AFP news agency. "There was complete silence from the G7 on the sale of gold. Yet the IMF has clearly said the gold can be sold to help cancel poor countries' debt," he said. Imbalances Crude oil prices rose above $55 a barrel last month, prompting Opec to lift production quotas by 500,000 barrels a day. However, with a tight balance of supply to demand, many experts believe output may have to rise again. The G7 ministers said the recent jump was a "headwind" to growth - and welcomed efforts to improve oil market data, as well as efforts to improve energy efficiency and supply. The statement also stressed the need for the US to address its surging trade deficit, and for Europe and Japan to deal with workplace barriers that are restricting growth. Further Information: G7 communique: Full text : http://news.bbc.co.uk/2/hi/business/4452383.stm UK G7 2005 : http://www.hm-treasury.gov.uk/OtherHMTsites/G7/g7_home.cfm
This article appears courtesy of the BBC
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