§ Mr. AllenTo ask the Secretary of State for Trade and Industry if she will make a statement on her policy towards debt swapping and the rainforest. [81243]
§ Ms HewittUnder ECGD's Debt Conversion Scheme, a percentage of a country's rescheduled debt stock (usually 10 or 20 per cent.) can be swapped for 'certain' projects. When evaluating such requests, ECGD will consider the potential contribution of any project towards the social, economic and environmental development of the country. ECGD is willing to consider projects involving rainforest protection. Any project must be jointly approved by the debtor Government and ECGD and comply with ECGD's Business Principles.
The Debt Conversion Scheme does not affect debt relief for HIPCs (Highly Indebted Poor Countries), for whom the UK Government have pledged to write-off 100 per cent. of their UK debt. Debt write-offs for HIPCs are contingent on country commitment to a Poverty Reduction Strategy Paper process.