Finance ministers of G8 have strictly warned not to give easy and cheap loans to the African countries, as they need to struggle a lot for repaying. After a two-day meeting held in Germany, a statement has been issued regarding the financial position of African countries. It has been stated that African countries need to manage their own financial responsibility. Members of this significant meeting include next prime minister of Britain Gordon Brown and US Deputy Treasury Secretary, Robert Kimmitt.
US, Britain, Canada, France, Germany, Italy, Japan and Russia are the G8 countries. Next month, a wider summit will be held in Heiligendamn. Major issue of this G8 summit will be Africa, as stated by the minister.
China has been considered as major risk to Africa. China depends a lot on its raw materials. This raw material mainly caters its developing economy. According to Mr. Kummit, “It is critical that both borrowers and creditors agree on approach to debt sustainability that prevents the re-emergence of debt distress”.
Approximately $50bn (a year) by 2010 would be aided by the eight wealthiest countries of the world. But, their huge promises seem to fall short according to critics.
European director of Debt Aids Trade Africa, Oliver Buston has stated that, “Heiligendamm is the last chance for the G8 leaders to rescue their reputation.”
According to the ministers, one need to vigilant in other business, as a lot of risk factor is associated with hedge funds. But, till now no code of conduct is issued.
Via:bbc
