Following the Asian earthquake and tsunami disaster which has had such a devastating effect on so many people, there is an urgent need for assistance.  All G7 countries have already committed substantial finance, from governments, their publics, and companies, to help affected countries cope with the immediate humanitarian crisis.  But their needs, both humanitarian and for reconstruction, are enormous.  The international community must continue to work together to help meet those needs.

In response G7 Finance Ministers agreed that:

• we would not expect debt payments from affected countries that request it until the World Bank and IMF have completed a full needs assessment of their reconstruction and financing requirements, recognising that some countries may be unable to make debt payments.  We will work, within the Paris Club, with other creditors to achieve a consensus for this approach;

• depending on the conclusions of the needs assessments, we also stand ready to consider all appropriate measures for further assistance; 

• the IMF, World Bank, Asian Development Bank and other multilateral institutions should make the strongest efforts possible to provide financial assistance, including through emergency post-disaster facilities; and

• we support urgent consideration by relevant fora of the international community to put in place an effective tsunami early warning system in the Indian Ocean, and the infrastructure necessary to make it effective.

We ask creditors at the next Paris Club meeting on 12 January to positively consider assisting affected countries in this way.  We call on the World Bank and IMF to complete their needs assessment this month.  We will consider what further steps are necessary in the light of this assessment, at our meeting on 4-5 February.  All the actions and expectations set forth in this statement will be implemented consistent with the national laws of creditor countries.

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