Rich countries looked closer to agreement on Saturday on wiping out $40 billion of debts of 18 impoverished nations after the Group of Eight pledged it would not fund the deal through existing resources, Reuters said. The Group of Eight nations pledged 100 percent debt relief for some of the world's poorest states at a summit in Gleneagles, Scotland, in July under a British presidency that had declared 2005 a make-or-break year for Africa. But 2-1/2 months later, the much-publicized deal has yet to release any more cash for the mostly African countries as donor nations have been haggling over how to pay for the debt relief and whether other states should benefit. Some non-G8 European countries, which are significant donors, have expressed concern the G8 would not provide the money required for the write-off and thus undermine the balance sheet of the International Development Association, the World Bank's lending arm. But the G8 promised on Friday that the financing capacity of international institutions would not be reduced, opening the way for the main objection to the deal to be overcome. --more 2322 Local Time 2022 GMT
