HC Deb 14 July 1988 vol 137 c311W
81. Mr. Holland

To ask the Chancellor of the Exchequer on what grounds he rejected the proposal by the French Government at the Toronto summit to write off one third of the official debt of the 20 least-developed African countries.

Mr. Lilley

On balance, a reduction in interest rates, as proposed in the Chancellor's initiative, offers greater short-term cash flow relief for the debtor than the French Government's proposal which involves earlier repayment of principal. The United Kingdom therefore considers it desirable to lower interest rates for those countries which qualify for debt relief.