§ Lord Hyltonasked Her Majesty's Government:
Whether, following the severe hurricane damage in Central America, they will attempt to secure reductions in the external debts of the countries affected. [HL3799]
§ Lord McIntosh of HaringeyThe UK has already written off all of its aid loans to Honduras and Nicaragua.
On Tuesday 11 November the Chancellor of the Exchequer and Secretary of State for International Development called on the World Bank, IMF and IADB to look at possible mechanisms for lessening the debt service obligations of Honduras and Nicaragua, including temporary suspension of payments to the IFIs. They proposed the establishment of a trust fund to help these two countries meet their short-term debt service payments to the IMF and World Bank, and pledged a £10 million contribution to it. They also called for the HIPC initiative to be used flexibly to accommodate the particular debt problems now faced by Honduras and Nicaragua, and for a possible moratorium on their official bilateral debt service payments.