Debt Relief (Hansard, 7 June 2000)

§ 19. Mr. McFall
To ask the Secretary of State for International Development what representations she has received from voluntary organisations and charities regarding the debt reduction initiative in advance of the G8 summit at Okinawa. [123189]

§ Clare Short
I continue to receive many letters from Church and other voluntary organisations on debt relief, many referring to the G8 Summit in Okinawa in July. When the Prime Minister met the Japanese Prime Minister last month, they agreed the importance of discussing debt issues in Okinawa.
The Government are committed to keeping up the momentum on the implementation of the Heavily Indebted Poor Countries (HIPC) Initiative in the run up to the Summit, and beyond.

§ 22. Mr. Jim Murphy
To ask the Secretary of State for International Development if she will make a statement about debt relief in southern Africa. [123192]

§ Clare Short
Mozambique, Malawi and Zambia are all Heavily Indebted Poor Countries, and in need of the exceptional debt relief provided under the HIPC Initiative. Mozambique received debt relief totalling $1.72 billion in June 1999, and will receive a further $250 million under the enhanced HIPC Initiative. Following the flooding there multilateral and bilateral creditors took special action to free up resources for reconstruction. The World bank and the IMF agreed to provide 100 per cent. relief on debt service payments in the first year, and the Paris Club has suspended all payments until Mozambique reaches its Completion Point under the revised HIPC framework, which is expected to be early next year.
Malawi and Zambia are both working towards qualifying for debt relief under the enhanced. HIPC Initiative. To do so they need to maintain progress on economic reform and to develop national poverty reduction strategies.

§ 23. Mr. Blizzard
To ask the Secretary of State for International Development when she expects the targets on debt relief for HIPC countries to be reached. [123193]

§ Clare Short
So far, only five countries have qualified for debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. This is disappointing. But at the recent Spring Meetings of the IMF and World bank, it was agreed to establish a joint World bank/IMF committee to oversee the implementation process, as the Chancellor and I had suggested. The committee has now begun its work, and should provide a focus for efforts towards meeting the commitment that three quarters of eligible countries will start to receive debt relief before the end of 2000.