IMF says debt relief plan may be flawed

A top International Monetary Fund official said on Wednesday 25 May the focus by the world's richest nations on debt relief is misplaced.

Raghuram Rajan, the IMF's chief economist, said in some cases debt relief was the best way to increase the net flow of resources to a poor country, but in many cases it was not.

"One-size-fits-all proposals, while politically more convenient, are unlikely to benefit recipient countries as much as proposals that tied debt relief and additional aid to a country's

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