Mr. President /Mr. Prime Minister,

AEFJN (Africa, Europe Faith and Justice Network) and SEDOS (Center for Study and Documentation of Missionary Congregations) represent 102 institutes of catholic religious men and women, citizens of the 42 HIPC countries and those represented at the G8 Summit. Our members witness daily the increasing sufferings of the people caused by poverty and the reimbursements paid for the interests on the multilateral debts of their countries.

The option of the International Financial Institutions to combat poverty fills us with hope. Indeed, a durable peace and security for all can only be obtained through concerted action against the terror of poverty and hunger that affect a huge part of our world population.

Over indebtedness hampers the economic integration of the 42 HIPC countries and is a major cause of poverty for their populations. Further debt cancellation is needed and has proven to be effective in alleviating poverty. The indebtedness of poor countries is at the very roots of poverty. Although not on the official agenda of the G8 Summit we believe that debt cancellation should be a major concern.

We expect from the Summit’s declaration bold steps towards debt relief as a means of poverty reduction in our world. We support and recommend:

1. That countries engaged in the HIPC program be allowed to calculate the level of sustainable debt service after having deducted from their export earnings the amount needed to finance their poverty reduction goals;

2. That those countries that have not enough resources to cover their needs for their poverty reduction strategies, be granted immediate additional debt cancellations, so as to free the funds needed;

3. That a free and transparent debt dispute settlement mechanism be put in place;

4. That the governments of the G8 agree to a calendar to fulfill their promises of committing 0.7% of their GDP for Official Development Aid (ODA).

May wisdom and compassion guide you in all your decisions,

Sincerely,