§ Mr. AllenTo ask the Chancellor of the Exchequer what are his Department's plans for assisting sub-Saharan countries in meeting debt repayments to multilateral agencies; and if he will make a statement.
§ Mr. NelsonThe poorest countries benefit from the IMF's enhanced structural adjustment facility (ESAF), which provides highly concessional long-term assistance at an interest rate of only 0.5 per cent. in support of economic reform in the poorest countries. The United Kingdom has just announced that it will provide an extra £50 million to subsidise the interest rate of the ESAF successor facility, on top of our earlier contribution of up to £327 million; over time the United Kingdom will contribute about one ninth of the subsidy required by ESAF.
These countries also benefit from concessional credits from the World Bank's International Development Association, to which the United Kingdom contributed £620 million at the last replenishment, which concentrates on lending to the poorest countries. They also have help meeting interest repayments on non-concessional loans to the World Bank through the bank's fifth dimension facility.