*EPF511 10/27/00
Text: Treasury's Summers Statement on Approval of HIPC Funds
(Praises Congress' vote to provided $435 million) (440)

U.S. Secretary of the Treasury Lawrence Summers praised Congress' vote to approve $435 million for debt relief for the world's poorest countries, which will be provided through the Heavily Indebted Poor Countries (HIPC) program.

"Debt relief is both a moral and a financial imperative," Summers said in a statement issued after the Congress voted October 25 to approve the $14,896 million foreign operations appropriations bill, which contained the funds for HIPC, a program administered by the International Monetary Fund (IMF) and the World Bank.

The legislation also authorizes the IMF to use its gold holdings for so-called "off market" sales, the proceeds of which will be used to fund HIPC, Summers noted. He also praised the Congress for approving additional funds for the World Bank's International Development Association, which lends at concessional rates to the world's poorest countries, and for other international financial institutions.

Following is the text of Summers' statement:

(begin text)

STATEMENT BY TREASURY SECRETARY LAWRENCE H. SUMMERS
October 25, 2000

I am extremely pleased by today's agreement by Congress to fully fund the President's budget request for the Heavily Indebted Poor Counties debt relief initiative.

Today's action to appropriate $435 million and authorize the use the remaining resources from IMF off-market gold sales enables the United States to leverage billions of dollars from other creditors to finance the debt relief initiative. Thanks to the leadership of President Clinton, this initiative will help give a fresh start to poor countries throughout Africa and Latin America, enabling them to translate old debts into new opportunities through education, health care, and other investments necessary to spur economic growth and reduce poverty.

Debt relief is both a moral and a financial imperative. I would like to congratulate and thank the unique coalition of members of congress from both sides of the aisle, the diverse group of religious leaders, humanitarian agencies, and business groups that worked so hard to make this initiative a reality.

I am also pleased that Congress provided substantial funding for the World Bank's International Development Association and other multilateral development institutions. These organizations are at the core of international efforts to reduce global poverty by assisting countries to address their enormous development challenges and improve basic social services. Finally, I welcome the Congress' support of the Global Environment Facility that provides assistance to address cross-border environmental challenges in developing countries.

(end text)

(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)
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