G7 countries question

As proposed in a recent G7 meeting, rich countries should write off substantial debt to poor nations. Who eventually carries this? the money has been spent, yet it will not be paid back… someone must end up with a hole in the back pocket? everyday consumers?

The countries who wrote off the debt. The balance of the debt is actually an “asset” to Rich Country owed by Poor Country. When the debt is written off, the asset is lost by Rich Country, and this loss makes up the “hole in the back pocket.”

In other words, the taxpayers of the creditor nations lose out in the long run. Whatever income was expected from debt payments will have to be made up by raising taxes, borrowing more, or cutting the budget.

That said, debt payments from third world countries do not amount to a very huge amount of money in national budget terms.