Global fund could loan cash to fight diseases

The Global Fund to fight Aids, tuberculosis and malaria has announced it may loan cash to developing countries when they no longer qualify for grants due to increases in their wealth.

Michel Kazatchkine, the funds director, told Reuters that by the end of 2009 ten countries from Eastern Europe and Central Asia will no longer qualify for grants and they will be classed as upper income countries.

By including loan payments as a future possibility the Global Fund could offer assistance to governments in heavily infected countries where wealth is growing.

Mr Kazatchkine told the news agency: "To us it's important that when the world's money for aid is being distributed it not only takes into account economic factors but also, for example, burden of disease."

He outlined Russia's example as the potential for extending its work into loans, where in 2006 the country pledged to repay 80 per cent of its grant from the Global Fund after it accumulated huge wealth.

Since 2001, the Global Fund has attracted $4.7 billion (£2.38 million) in financing and funded 154 programmes in 93 countries worldwide.

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