World Bank urges cancellation of Mozambique debt

The President of the World Bank, James Wolfensohn, has urged industrialised countries to reduce Mozambique's debt by more than one-billion dollars.

The countries -- known as the Paris Club -- are to meet in Paris later today Wednesday.

In a letter to the Club's finance ministers, Mr Wolfensohn said agreement on Mozambique would demonstrate that creditor institutions could work together to help debtor nations.

Although Mozambique is one of the world's poorest countries, correspondents say there's concern within the Paris Club that special terms might set a precedent for other nations.

Mozambique's debt was also referred to earlier by the Archbishop of Canterbury, George Carey.

Speaking in Addis Ababa, he called for all Western debts in Africa to be cancelled in celebration of the millenium.

From the newsroom of the BBC World Service