HC Deb 25 April 1994 vol 242 cc17-8
31. Mr. Luff

To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to provide aid to reduce the burden of Ugandan debt.

Mr. Lennox-Boyd

We have provided more than £93 million in balance of payments support for Uganda's economic recovery programme since 1987, which has helped to ease the debt-servicing burden. We have also forgiven all Uganda's old aid debt to the United Kingdom.

Mr. Luff

Does my hon. Friend agree that his answer provides further evidence of Britain's excellent record on aid and debt relief to the poorest nations, such as Uganda? Does he also agree that for countries, such as Uganda, which face serious debts to multilateral institutions, similarly enlightened attitudes will be required from other countries, especially Japan?

Mr. Lennox-Boyd

My hon. Friend is right. The Prime Minister was responsible for the Trinidad terms which have given enormous relief to many countries, including Uganda. We very much hope that Japan will join any Paris club consensus for improving the existing terms. I should add that Japan implements the existing Trinidad terms with other creditors and has made clear that it has a commitment to help developing countries.

Mr. Simon Hughes

Given that Uganda is one of the five poorest countries in the world, how is it logical and justifiable that over the next five years, Uganda will be repaying £200 million to the International Monetary Fund, one of the richest institutions in the world? How can that be justified? If it cannot be justified, what can we do about it?

Mr. Lennox-Boyd

The fact is that Uganda is projected, over the years 1993–94 to 1995–96, to receive US $744 million from the World bank's special programme for Africa.