HC Deb 18 December 2002 vol 396 cc817-8W
Tony Worthington

To ask the Chancellor of the Exchequer what progress has been made to secure the US$1 billion for the HIPC initiative that is not financed; and if he will make a statement. [87571]

John Healey

The UK government have been at the forefront of the international debate on debt relief issues, and continues to press for the rapid and full implementation of the Heavily Indebted Poor Countries (HIPC) initiative.

At the G7 Summit in Kananaskis in June 2002, the UK helped secure agreement for the G7 to fund their share of the financing shortfall in the enhanced HIPC initiative, recognising that it would be up to US$1 billion.

At the annual meetings of the World bank and IMF in September the UK took a strong lead by pledging its share of the funds needed in advance. The development committee communiqué welcomed the pledges of support from the UK and others, and called on other countries to make firm pledges as a matter of urgency.

The UK and 16 other donors have now agreed pledges totalling $850 million to the HIPC trust fund. EU member states have also called on the European Commission to make a contribution through the European Development Fund.

Tony Worthington

To ask the Chancellor of the Exchequer if he will seek further independent reviews of IMF growth projections for HIPC countries; and if he will make a statement. [87573]

John Healey

At the United Nations General Assembly Special Session on children in May 2002, the Chancellor called for greater caution over the forecasts used to calculate debt sustainability for HIPCs. And G7 leaders agreed, at their meeting in June, that the IMF and World bank should ensure that forecasts of debt sustainability are made on the basis of prudent and cautious assumptions about growth and exports. Therefore, the UK is pleased to note that in preparation for the annual meetings of the International Monetary and Financial Committee and Development Committee in September 2002, IMF and World bank staff committed to develop alternative macroeconomic scenarios, including a policy-based "optimistic" and a "conservative" scenario that would reflect country's vulnerabilities and the uncertainties of external environment. IMF and World bank staff are also expected to base their own growth projections on a thorough analysis of the likely sources of growth and to present such analyses explicitly in discussions with authorities, as well as in staff documents.

The Independent Evaluations Office (TEO) of the IMF has been discussing its work programme for 2003, proposing an evaluation of the poverty reductions strategy papers and the poverty reduction and growth facility approach. The UK has contributed to that discussion to ensure the IE0 can conduct a thorough assessment.

Matthew Taylor

To ask the Chancellor of the Exchequer if he will make it his policy to release the concluding statement of the International Monetary Fund Article IV consultations by means of a written ministerial statement; and if he will make a statement. [87626]

John Healey

The IMF's concluding statement at the end of the 2002 Article IV consultations was published by the IMF on 9 December. Copies of the statement were also placed in the Libraries of both Houses.