Finance ministers of the Group of Eight (G8) richest countries reached a deal in London Saturday on debt relief for the world's poorest countries.

The ministers agreed on "100-percent debt cancellation" for 18 poorest countries with immediate effect, which amounts to 40 billion US dollars, British Chancellor of the Exchequer Gordon Brown told a press conference.

"It's not a time for timidity, but a time for boldness," he said.

Under the deal, the World Bank, the International Monetary Fund and the African Development Fund will write off debts owed to them by the 18 selected countries.

Brown added that there will be tough disciplines for the future which includes improving transparency and combating corruption on the part of the beneficiaries.

The agreement came during a two-day meeting in London of finance ministers of the G8 which groups the Britain, Canada, France, Germany, Italy, Japan, the United States and Russia.

Brown said there was the political will of the richest countries to move forward and he had earlier promised the "the biggest debt settlement the world has ever seen."

In all, 38 countries would benefit from the cancellation of 55 billion dollars in debt Brown is pushing for.

Of the sum, 40 billion dollars from 18 highly-indebted countries in Africa would be written off immediately while another 11 billion dollars from nine countries would go in 12 to 18 months.

Debts of a further 11 countries will also be written off completely when they meet the conditions meted out by G8 finance ministers and the banking institutions.

Source: Xinhua