No debt aid deal came out of the G7 meetings in Washington as predicted by outgoing World Bank president James Wolfensohn. Europe and the U.S. differed opinions over the latter?s proposal to cancel debts that poor nations owe to the World Bank and the African Development Bank without any commitment on reimbursing the two financial institutions for loan repayment losses. According to Wolfensohn, loan repayments account for some 20 percent or more of the World Bank?s lending resources; thus if the funds used for the debt relief will not be restored, the development agency "will have less money to lend." (Source: Deal to Ease Poor Nations' Debt Eludes Rich Nations/The New York Times)
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