The Presidents gathered at the Second Summit of Heads of State of the South American Community of Nations, convinced on the importance of debt relief as a cornerstone of efforts to reduce poverty and stimulate economic growth in Heavily Indebted Poor Countries, agree:

1) TO REITERATE the need for urgent and decisive action by the international community to achieve the results of poverty eradication in the poorest countries in Latin America and the Caribbean.

2) TO EMPHASISE the impediment that a high debt burden places on efforts to achieve sustainable development and social progress in Heavily Indebted Poor Countries.

3) TO COMMEND the Committee of Governors of the Inter-American Development Bank (IDB) for agreeing on the framework for the 100% cancellation of debts on November 17, 2006, owed by Bolivia, Guyana, Haiti, Honduras and Nicaragua (the Beneficiary Countries) to the IDB’s Fund for Special Operations (FSO) effective from January 1, 2007.

4) TO URGE the Governors of the IDB to approve the resolution on the cancellation of debts owed by the Beneficiary Countries to the FSO when called upon to vote by December 21, 2006.

5) TO ENSURE that the objective of debt cancellation by the IDB is delivered on the following terms:

a. The stock of debt eligible for cancellation shall be that which was disbursed and outstanding as at December 31, 2004.

b. Any agreement must allow for the continued operation of the Intermediate Financing Facility (IFF).

Agreed in Cochabamba, Bolivia on December 9th, 2006.