G7 to Sell Gold in Debt-relief Scheme, German Minister Says
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Sep. 21-MAR--
[B] G7 to sell gold in debt-relief scheme, German minister says
By Agence France-Presse
Berlin--Sep 21--The Group of Seven (G7) leading industrialized nations
will sell 14 million ounces of gold worth about $3 billion (2.88 billion
euros) to fund debt relief to developing nations, Germany's minister for
cooperation said today.
* * *
But the gold from IMF reserves will be sold to central banks,
Heidemarie Wieczorek-Zeul told a press conference, and not on the open
market, which would push prices down.
The minister made her announcement a few days before the IMF and the
World Bank hold their annual meetings in Washington.
It had been expected that ten million ounces of gold would be put up
for sale.
The sale will raise funds to cover financing of debt relief for 33
countries which the G7 (the UK, Canada, France, Germany, Italy, Japan, and
the US) had decided upon at its June summit in Cologne, Germany.
That plan agreed to cut more than 200 billion dollars in third world
debt.
"The G7 countries made a breakthrough," Wieczorek-Zeul said, adding
that she was sure the decision would be ratified by the IMF's directors.
The choice of a so-called off-market gold sale was a compromise
intended to maintain the precious metal's value. End
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