The countries affected by the Asian tsunami have seen their debts frozen by the G7 group of industrialised nations. The G7 will meet in Paris on Jan 12th to discuss the Asian disaster. UK Chancellor Gordon Brown announced the decision today.
"We must ensure that those countries are not prevented from paying for essential reconstruction because they are having to fund the servicing of their debts," Mr Brown said. Together the affected countries owe approximately $272bn (£144bn).
The UK will be suggesting the entire cancellation of some of the debts at the meeting next week. Indonesia owes $48bn alone, and would normally have to pay $4.1bn in debt repayments plus interest during 2005.
