When Forgiving Debt Pays Off
Debt forgiveness doesn't come easily to banks. But the World Bank and International Monetary Fund have decided to try it.
A number of debtor nations, starting with Uganda, will be forgiven their World Bank and IMF debts in order to help them reach economic stability. To qualify, developing countries must have a record of fiscal responsibility.
For Uganda, which has tamed inflation and moved toward economic growth, the program will free up millions of dollars each year - money that reportedly will go toward expanded education for Ugandans.
We applaud this initial move, which is both well-intentioned and canny. In the long run, it should prove a sound investment in self-sufficiency.