New Financing Instrument Could Make
Urgently Needed Millions Available to
Fight
AIDS, TB and Malaria
Global Fund Debt Conversion unveiled in new report by
Global AIDS Alliance and Advocacy International
| "This report shows the tremendous potential of debt conversion to release resources that countries heavily burdened by the three diseases could use to save lives. It’s the type of innovative funding approach that would be welcomed by the Global Fund." -Dr. Richard Feachem, Executive Director of the Global Fund |
A new debt conversion mechanism that could release millions in new funds to fight AIDS, tuberculosis, and malaria in developing countries has been unveiled in a report by the Global AIDS Alliance (GAA) and Advocacy International.
Known as the Global Fund Debt Conversion mechanism (GFDC), the plan would convert the foreign debt owed by poor countries into investments in country-driven programs approved by the Global Fund to Fight AIDS, TB and Malaria. Additionally, under the GFDC plan participating debtor nations would avoid negative consequences to their credit standing within the global economy caused by the more traditional mechanism of debt cancellation.
The report was based on a six-month feasibility study of seven debtor countries which have successfully implemented Global Fund programs, and are making significant investments in healthcare. As a result, the study recommended Indonesia, Peru, Pakistan, and Nigeria as the most viable for initial implementation of the GFDC mechanism. The report’s recommendations include establishment of a pilot program for the GFDC, and creation of an advocacy program, including a campaign to expand the categories of debt eligible for conversion. In addition, further analysis is planned to assess whether the GFDC mechanism would be feasible in other Global Fund recipient countries.
| "As we have seen over the years, debt relief can be an innovative tool to generate additional funding for AIDS in developing countries," said Dr Peter Piot, UNAIDS Executive Director. "In Uganda, the first country to benefit from debt relief, the money freed up from debt cancellation was used to strengthen its national AIDS plan, which ultimately succeeded in reversing HIV infection rates. We welcome the development of a new debt conversion mechanism, which could be another effective way of mobilizing additional resources for reversing the AIDS epidemic in debtor countries."
-Dr. Peter Piot, Executive Director, UNAIDS |
Download the full report:
Global Fund Debt Conversion Report (1.47 MB)
External Links:
Global Fund Debt Conversion
Further information, please contact:
|
Robert Fillip The Global Fund (Geneva, Switzerland) Phone: + 41 22 791 1939 |
|
Paul Zeitz Global AIDS Alliance Phone: +1 202 296 0260 Ext: 209 / +1 202 365 6786 |
|
Ann Pettifor Advocacy International Phone: +44 207 091 0850 / +44 777 0886 146 |
