§ Baroness Williams of Crosbyasked Her Majesty's Government:
Whether Malawi's debts will be waived, in part or in total, under the heavily indebted poor countries (HIPC) initiative. [HL1735]
§ Lord McIntosh of HaringeyMalawi, as a country eligible for relief under the HIPC initiative, will receive debt relief under the terms of that initiative. The level of relief is calculated by World Bank staff at the time the country reaches decision point but, in the case of the Paris Club creditors, will be equivalent to 90 per cent or more debt cancellation.
Malawi will, of course, also benefit from the UK's bilateral policy of providing 100 per cent debt relief for countries qualifying under the HIPC initiative. Several other bilateral creditors (including the US, Canada and France) have indicated that they are also willing to provide 100 per cent debt relief.