§ Mr. WigleyTo ask the Chancellor of the Exchequer what is the total aggregate indebtedness of Uganda to the United Kingdom, by way of outstanding bilateral loans; and what is Her Majesty's Government's policy towards easing the burden of this debt.
§ Mr. NelsonUganda's outstanding debts to the United Kingdom total £25£5 million, all of which are in respect of business insured by the Export Credits Guarantee Department. All outstanding debts to the Overseas Development Administration were written off in 1981 under the provisions of retrospective terms agreement.
On 17 June 1992, Uganda rescheduled its official bilateral debts to Paris club creditors under a concessional, Trinidad terms agreement. This involved writing down by 50 per cent. the maturities falling due over the period of Uganda's International Monetary Fund programme. It also included a commitment by creditors to consider action on the whole of Uganda's official bilateral debt stock in three years' time, subject to Uganda maintaining a good debt servicing record and a satisfactory performance under an IMF programme.
The United Kingdom is pressing the other Paris club creditors to improve the existing Trinidad terms. In particular, we should like the Paris club to increase the rate of debt reduction above 50 per cent. and to offer immediate stock of debt reductions for countries with a good track record of debt servicing and economic reform.