§ Baroness AmosMy right honourable friend the Secretary of State for International Development (Mr Hilary Benn) has made the following Statement.
68WSDebt repayments totalling £9.45 million owed by the Government of Jamaica on past loans from the UK have been cancelled by the Department for International Development (DfID). This sum comprises the following:
Relief under the Commonwealth Debt Initiative (CDI) for all repayments due in 2004–05: £3.53 million
Relief of loan repayments due to the Commonwealth Development Corporation (CDC) in 2004–05: £2.91 million
Reimbursement of loan repayments made to the CDC during 2003–04: £3.01 million.
Part of the debt held by the Commonwealth Development Corporation was transferred to DfID in 1999, when the CDC was transformed into a public limited company. This debt is now managed within the CDI process.
The Commonwealth Debt Initiative, launched in October 1997 by my right honourable friend the Chancellor of the Exchequer, aims to provide additional relief in respect of government-to-government loans to low and middle-income countries in the Commonwealth which are committed to achieving the millennium development goals, promote transparent and accountable government, and pursue economic policies that encourage sustainable development.
Approval of debt relief for Jamaica follows a detailed assessment by the Governments of Jamaica and the UK against these criteria. The assessment considered the effects of Jamaica's high level of debt and its impact on pro-poor expenditure, and the high levels of crime and violence. It also considered the steps taken by the Government of Jamaica to modernise the public sector, which is central to economic recovery and growth, to develop a comprehensive strategy to reduce crime and violence and promote security, and to develop a medium-term socioeconomic policy framework, which will provide a coherent framework for policy decisions which promote growth, security and the reduction of poverty.