§ Ms Hewitt
There is no definitive list of countries that will be eligible for debt relief under the HIPC initiative. Eligibility for the initiative is determined on a case-by-case basis. Criteria used to determine the eligibility of a country include being entitled to World Bank assistance only for the International Development Association (IDA), and the unsustainability of its debt burden even after the full application of traditional debt relief mechanisms.
§ Ms Drown
To ask the Chancellor of the Exchequer what forecast for world economic growth was originally used to calculate the debt sustainability ratios of countries in the Heavily Indebted Poor Country Initiative; and what assessment he has made of the impact of revised forecasts for growth on the Government's forecast for debt sustainability. 339W
§ Ms Hewitt
A country's debt burden is considered unsustainable for the purposes of the HIPC initiative if the debt to exports ratio (in Net Present Value terms) is above 200–250 per cent. after the application of all traditional debt relief mechanisms. This ratio is not itself dependent on any particular rate of world economic growth. In as much as the level of world economic growth affects a country's exports, however, it will impact on the denominator of this ratio.