§ Lord McIntosh of Haringey
The Chancellor of the Exchequer has said that, for countries eligible for multilateral relief under the Heavily Indebted Poor Countries Initiative (HIPC), the UK will, on a case by case basis, provide debt relief of up to 100 per cent, if necessary, and where debt relief will finance poverty reduction. Amongst other things, the Government will be seeking to ensure that money saved in servicing debt 9WA will contribute to educating the young and/or improving healthcare.
Countries have yet to be brought forward for debt cancellation under the new initiative. The UK is pressing the IMF and World Bank to move quickly on the timetable of countries that Are eligible for retrospective treatment—i.e. those that have been through the process under the old HIPC Initiative, but who are eligible for higher levels of debt relief under the terms of the new initiative. We expect the first case to be discussed shortly in the World Bank and IMF Boards.