Mr Camdessus, speaking at the IMF's spring meeting in Washington, said that discussions had been based on selling five million or more ounces of gold and then investing the proceeds to help debt relief fund set up by the IMF and its sister organisation the World Bank. Germany, which had been fiercely opposed the plan until a new government took power late last year, also appears to be coming round to the idea. UK Chancellor Gordon Brown said that there was a growing consensus among the Group of Seven leading industrial nations, which includes Germany, for a gold sale. There has been a breakthrough in attitudes. It is now clear that countries have either come out in favour or are willing to consider the idea.
Japan offers help Japan has offered to cancel the debts of the world's poorest countries.
Japan is the largest lender to developing countries, but it has been reluctant until now to offer a bilateral debt reduction plan. Woe for world's poor Mr Camdessus indicated that a decision would be made soon, although the IMF had failed to finalise an agreement at its meeting. The move by the IMF comes as the state of the world economy improves - pulling back from the brink of the financial crisis that hit Asia and Russia last year. However the World Bank warned earlier this week that efforts to improve health, education and the living standards of the world's poor are faltering. Plummeting currencies, for example, have sent food prices sky-high, and buying food accounts for a large proportion of the spending of poor families.