Pádraic McCormack (Galway West, Fine Gael)
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Question 333: To ask the Minister for Finance the progress which has been made following recent meetings in London to cancel the debt of the poorest countries in the world and as Ireland's Governor of the IMF and World Bank, if there are proposals to sell IMF gold to fund the debt cancellation of these countries; and if he will make a statement on the matter. [9965/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I assume the Deputy is referring to discussions within the G7. Ireland is not a member of the G7-G8 but I understand discussions are continuing there. I refer the Deputy to my reply to the House on this subject of debt on 8 March 2005 and subsequently.

Adequate financing for debt relief is essential to help reduce poverty in many parts of the world. It is important to adequately finance the relief of debts owed to the International Monetary Fund in order that the fund can continue to play a role in the poorest countries. The managing director has stated that he will, as requested, bring forward proposals at the spring meetings, covering the fund's gold and other resources. These resources are part of the assets of the IMF. These proposals are awaited and they will be assessed when available, not least from the need to ensure that the IMF has the resources necessary to carry out its critical functions in future. The sale of part of IMF gold reserves to cover the costs of additional debt relief has been proposed, in addition to a number of other mechanisms, to fund the relief of the debts of poor countries. Agreement on any such mechanisms may be problematic given possible opposition by certain states to gold sales.