ABSTRACT
The benefits of the remission to debtor countries will also be great, if the Jubilee is rightly presented and negotiated. Most of the cost of Jubilee is a giving up of claims for fixture payment, rather than a payment of money. The annual cost, therefore, of the remission of the bilateral debt of poorer countries to the UK Government will be about £40 million per year. The benefits of Jubilee-type debt remission will only be felt if the country concerned whose debts have been forgiven is able to borrow money for proper purposes in future, on terms which are not exploitative. The vast investment in Mexico was followed by the currency and debt crisis of late 1994, when the Mexican economy had to be rescued by the inflow of large funds from the US, the International Monetary Fund (IMF) and other bodies. The IMF was supplied with a reserve of $40 billion worth of gold when it was set up.
