§ 10. Mrs. EllmanTo ask the Secretary of State for International Development if she will make a statement on her policy towards cancellation of Ethiopia's foreign debt. [92213]
§ Clare ShortHMG supports debt relief for Ethiopia within the framework of the internationally agreed Highly Indebted Poor Countries (HIPC) Initiative. Ethiopia qualified for interim debt relief from international creditors under HIPC at Decision Point in November 2001. This temporarily reduces the debt service payments Ethiopia has to pay. Ethiopia will qualify for irrevocable debt relief when it reaches Completion Point in the next year or two. Total HIPC debt relief over time will amount to $1.9 billion. These resources will be freed up for Government of Ethiopia to use for poverty reduction.
Ethiopia owes the UK £15.4 million, but is already receiving full debt relief on this under the UK Government's policy, which provides 100 per cent. relief on debt service payments due, starting at Decision Point, and writes off formally the entire debt after Completion Point. The UK is also concerned that Ethiopia may finish the HIPC process with debts above the HIPC thresholds and we will seek to ensure that additional relief is provided as necessary to prevent this.
We will continue to monitor the impact of external debt on the pace of poverty reduction in Ethiopia and work with the international community to address problems that may be identified.
§ 13. Mr. DavidTo ask the Secretary of State for International Development what is being done to bring about greater international debt relief for Ethiopia. [92216]
§ Clare ShortHMG supports debt relief for Ethiopia within the framework of the internationally agreed Highly Indebted Poor Countries (HIPC) Initiative. Ethiopia qualified for interim debt relief from international creditors under HIPC at Decision Point in November 2001. This temporarily reduces the debt service payments Ethiopia has to pay. Ethiopia will qualify for irrevocable debt relief when it reaches Completion Point in the next year or two. Total HIPC debt relief over time will amount to $1.9 billion. These resources will be freed up for the Government of Ethiopia to use for poverty reduction.
Ethiopia owes the UK £15.4 million, but is already receiving full debt relief on this under the UK Government's policy, which provides 100 per cent. relief on debt service payments due, starting at Decision 307W Point, and writes off formally the entire debt after Completion Point. The UK is also concerned that Ethiopia may finish the HIPC process with debts above the HIPC thresholds, and we will seek to ensure that additional relief is provided as necessary to prevent this.
We will continue to monitor the impact of external debt on the pace of poverty reduction in Ethiopia and work with the international community to address problems that may be identified.