IMF Urged to Use Gold Profits for Debt Cancellation

    Several non-governmental organizations have urged the International Monetary Fund to use some of its $2.8 billion in profits from selling gold to write off debts of poor countries.

    The organizations, 58 in all and include ActionAid International, Oxfam International, ONE, the International Trade Union Confederation and global Jubilee networks, want the profits to be used to help developing countries address external shocks, such as the recent financial crisis and food and fuel price hikes, IPS reports.

    The fund’s board will meet Wednesday (April 6) to discuss how to use the gold sales windfall. In an April 4 news release, aid group Oxfam noted that IMF will consider three options for the $2.8 billion gold sale profits: use it to pay for ongoing operating expenses, add it to precautionary reserves, or use it to aid low-income countries recovering from multiple crises.

    Melinda St. Louis, Jubilee USA’s deputy director, said: “The moral choice is clear: the IMF should use its excess money for debt cancellation and non-debt creating assistance for the poorest.”

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    About the author

    • Ma. Rizza Leonzon

      As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.