§ Mr. Ieuan Wyn JonesTo ask the Secretary of State for Foreign and Commonwealth Affairs how much United Kingdom commercial bank debt has been cancelled under the Brady plan; and what is the cancelled debt as a percentage of outstanding third-world debt.
§ Mr. Lennox-BoydDirect figures of United Kingdom commercial bank debt cancelled under the Brady plan are not available. However, in 1990 and 1991, United Kingdom banks' holdings of debt reduction instruments ("Brady bonds") rose by £2,930 million and £850 million respectively, or £3,780 million over the two years. It is estimated that these holdings replaced nearly £6 billion of loans outstanding, and therefore accounted for around £2 billion of write-offs. These £2 billion of write-offs may he considered as estimates for the amount of debt reduction, or cancellation, involved, and represent around 11 per cent. of all United Kingdom bank debt outstanding to developing countries as at end 1991. Total write-offs for 1989–91 are estimated to have been £4,160 million.