Foreign Operations Bill clears last hurdle

Washington, DC - With the backing of a diverse coalition of churches and charitable organizations, Congress agreed this evening to provide full funding for the U.S. share of an international initiative to write off the debts of some of the world's poorest countries. This agreement clears the last remaining hurdle for the Foreign Operations appropriations bill to move to the President, who has indicated his support.

Congressional negotiators nearly doubled - to $435 million - the House's offer of $225 million for debt relief, after considerable pressure from supportive lawmakers, religious leaders, and celebrities. The Senate had only proposed $75 million. Negotiators also agreed to allow the IMF to revalue part of its gold reserves for debt relief, worth about $570 million to the program. The gold issue was a sticking point between the Administration and Senator Phil Gramm (R-TX), who wanted sweeping changes to the IMF and debt relief program.

"For the poorest countries, debt relief means more kids can go to school, more health clinics can deliver immunizations, and more farmers can get their goods to market," said Thomas H. Hart, Director of Government Relations for the Episcopal Church in the United States. "It makes sense for the poorest countries to invest in health and education, instead of making endless interest payments to the richest countries."

The issue has attracted an eclectic group of backers. "It has support from conservative Christian leader Pat Robertson to U2 rock star Bono, from anti-globalization activists to multinational corporations. Jesse Helms and Maxine Waters pushed for the same program. It's been remarkable," said Hart, who chaired the coalition's lobbying effort. "What a way to finish our celebration of the Jubilee Year of 2000. The Biblical texts describe Jubilee as a time of reconciliation. In the midst of this season of intense politics and partisanship, all sides came together to help the poorest people on earth," Hart said.

Resolved tonight was a request from the Administration for Congress to help finance an international debt relief arrangement reached among the G-7 last year in Cologne, Germany. The agreement would relieve up to $90 billion in debt for 33 poor countries, while promoting transparency, better fiscal management, poverty reduction, and economic growth in those countries. The direct cost to the United States is $920 million over four years for both bilateral and multilateral debt relief. The $435 million approved today represents this year's installment on the program, and a critical statement of political support from the Congress.

"The U.S. had to come up with our small share, or else the entire program could have toppled," Hart said. "Now we can unlock billions of dollars in debt relief from other countries. The rest of the world was waiting for the U.S., and we finally came through."