Wednesday, November 18, 1998 Published at 12:18 GMT
Plan for Mitch debt relief
Help may be at hand
Countries struggling with the aftermath of Hurricane Mitch could have much of their debts written off.
Mr Camdessus, who has been touring flood-ravaged areas of Nicaragua, has also promised more low interest loans with repayment spread over a long time.
Both Nicaragua and Honduras have been trying for years to reduce their debt which costs them much of their capital.
Nicaragua is in an even worse position with debts of $6bn - three times the country's annual gross domestic product.
The hurricane is estimated to have killed 11,000 people and left hundreds of thousands homeless.
Thousands of people are still missing and damage to crops and infrastructure runs into billions of dollars.
Fears of cholera epidemic
As aid agencies struggle to bring food and medicine to the survivors, there are growing fears of a cholera epidemic.
In Honduras doctors are seeing dramatic increases in people with Dengue fever, diarrhoea and pneumonia, which they attribute to the floods.
Aid agencies are racing against time to build water treatment plants and clean up wells polluted by flood water.
Meanwhile, El Salvador has reported a cholera outbreak in the south-east of the country. One person is dead and four are ill after drinking contaminated water.
In Nicaragua, the pressure seems to have eased - many bridges have been rebuilt and food seems to be available in most places.
However, there is concern that aid has not been used as effectively as it could have been and some villagers say they still only have enough rice to eat once a day.
IMF urges countries to cancel debts
Mr Camdessus's trip follows a visit by Hillary Clinton who said the United States would roughly double emergency aid commitments to the region, to a total of more than $250m.
Mr Camdessus also urged individual governments to help ease Nicaragua and Honduras' debt burdens.
In the past two weeks, the two countries have received commitments for major debt relief from France, Spain, Cuba and the US.
Mr Camdessus also praised the Nicaraguan Government's continuing commitment to painful structural reform, despite its current difficulties.
The IMF's low interest loans come with conditions that the country trim its budget deficit, tame inflation and meet other strict targets.
Earlier reports suggesting that the IMF is planning to write-off some 80% of the loans it is owed by Honduras and Nicaragua were incorrect.