HC Deb 08 March 2004 vol 418 cc1271-2W
Mrs. Calton

To ask the Chancellor of the Exchequer whether sufficient funds are available from the money committed by the G8 in Canada in 2002 for the Heavily Indebted Poor Countries fund for top-up debt relief to provide the sum required for Ethiopia to meet the sustainable debt to export ratio set by the World Bank. [158574]

John Healey

Following the enhancement of the HIPC Initiative in 1999. it became apparent that some countries would reach Completion Point with deteriorated debt indicators compared to the projections at Decision Point. As a result, the Initiative provides the option of additional debt relief, or 'topping -up', at Completion Point, beyond that committed at Decision Point, when exceptional and exogenous factors have caused a substantial deterioration in a country's long-term debt sustainability. At the G8 summit in Kananaskis, leaders agreed to fund the financing short full in the HIPC Trust Fund, pledging up to an extra US $1 billion, part of which would be used to cover additional costs of topping up.

Ethiopia is shortly expected to reach its HIPC Completion Point with a debt-to export-ratio in excess of the 150 per cent. target set by the IMF and World Bank, and so should be eligible for consideration for topping up. The UK has been working closely with the Ethiopian government and supports the case for topping up. The potential costs have not been finalised, but it is expected that the resources pledged in 2002 will cover the costs for the HIPC Trust Fund.

Mrs. Calton

To ask the Chancellor of the Exchequer whether the paper, prepared by the World Bank on Completion Point for Ethiopia, has been presented to the Boards of the(a) World Bank and (b) International Monetary Fund. [158576]

John Healey

Ethiopia is expected to reach Completion Point in the HIPC Initiative shortly. The Completion Point paper has yet to be presented to the Boards of either the World Bank or the IMF.

Mrs. Calton

To ask the Chancellor of the Exchequer what assessment he has made of the date by which the(a) World Bank and (b) International Monetary Fund will decide on the Completion Point for Ethiopia. [158592]

John Healey

The Executive Boards of the World Bank and the IMF were scheduled to discuss Ethiopia's Completion Point at the end of February 2004. New dates for these meetings are expected to be set shortly. The UK has been working closely with the Ethiopian government and supports the case for topping up Ethiopia's debt relief at Completion Point.