The group of eight industrial nations have agreed a deal on debt relief for the world's poorest countries, the British Chancellor, Gordon Brown, has announced.
Mr Brown made the announcement in London, where G8 finance ministers are holding a second day of talks.
The plan involves cancelling 100% of the debt obligations of 18 of the world's poorest countries to multinational lenders such as the World Bank, the International Monetary Fund and the Africa Development Fund at a cost of €33 billion ($40 billion).
It will also see debt relief for a further 20 states in the future.
Mr Brown managed to clinch the debt cancellation deal with the support of the US despite reservations from France and Germany.
The British Prime Minister, Tony Blair, secured US backing for the plan in a meeting with the US President George W Bush, yesterday, paving the way for its adoption at today's meeting.
The agreement is the first big success of Britain's presidency of the G8, in which Mr Blair has put the developing world and climate change at the top of the agenda.
