§ Ms DrownTo ask the Chancellor of the Exchequer when and for what reasons Nigeria was removed from the list of countries eligible for the Heavily Indebted Poor Countries Initiative. [57694]
§ Ms HewittThere is no definitive list of countries that will be eligible for debt relief under the HIPC initiative. Eligibility for the initiative is determined on a case-by-case basis. Criteria used to determine the eligibility of a country include being entitled to World Bank assistance only for the International Development Association (IDA), and the unsustainability of its debt burden even after the full application of traditional debt relief mechanisms.
§ Ms DrownTo ask the Chancellor of the Exchequer what forecast for world economic growth was originally used to calculate the debt sustainability ratios of countries in the Heavily Indebted Poor Country Initiative; and what assessment he has made of the impact of revised forecasts for growth on the Government's forecast for debt sustainability. [57695]
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§ Ms HewittA country's debt burden is considered unsustainable for the purposes of the HIPC initiative if the debt to exports ratio (in Net Present Value terms) is above 200–250 per cent. after the application of all traditional debt relief mechanisms. This ratio is not itself dependent on any particular rate of world economic growth. In as much as the level of world economic growth affects a country's exports, however, it will impact on the denominator of this ratio.
§ Ms DrownTo ask the Chancellor of the Exchequer what steps will be taken to revise the debt sustainability ratios used in the Heavily Indebted Poor Countries Initiative to take account of revised estimates of world growth for 1998. [57696]
§ Ms HewittAt the recent meeting of the Development Committee of the IMF and World Bank, it was agreed that there would be a comprehensive review of the HIPC initiative as early as 1999. UK Ministers urged that this review should include consideration of current debt sustainability criteria.