"We are now committed to addressing the sustainability of debt of the poorest countries by making progress on debt relief and grant financing," said a statement issued after a meeting of G7 finance ministers and central bankers.

The statement stopped short of endorsing a proposal by Britain to write off its share of debt and avoided any mention of a call for a 100-percent writeoff of poor nations' debt, sought by some activists.

In poverty reduction efforts, the G7 said, "There is a need for additional financial aid grounded on the principles of good policies, debt sustainability, accounting for results, and enhancing predictability and aid effectiveness."

Two groups pressing for a full writeoff of debt to the poorest countries criticised the G7 for a lack of action.

"The G7 have chosen to delay debt cancellation that could have put 100 million children into school," said Oxfam's Max Lawson.

"Once again rich countries have turned up with their notebooks not their checkbooks, and the price will be paid by the world's poorest people."

"Rich countries' delay in breaking the log-jam on debt leaves the poorest countries paying out 100 million dollars a day that could be spent on health and education. The poor cannot wait," said Patrick Watt of Action Aid.

On Sunday, British Chancellor of the Exchequer Gordon Brown said his Labour government will unilaterally write off its share of debts owed to the World Bank and other development banks, and urged other wealthy nations to follow.

The move provided fresh impetus to a movement to press the G7 along with the IMF and World Bank to find a way to wipe out the debts that are crushing many poor nations.

But the rest of the G7, which includes Britain, Canada, France, Germany, Italy, Japan and the United States, have different ideas.

One plan to tax international capital flows, advocated by presidents Jacques Chirac of France and Luiz Inacio Lula da Silva of Brazil, has been rejected by some G7 nations, notably the United States.