§ Lord Hyltonasked Her Majesty's Government:
Whether Niger and Ethiopia are eligible for "topping up" debt relief, because of severe "external shocks"; and whether they will ask the G8 member states to honour their 1999 commitments to Niger and Ethiopia for a "lasting and sustainable exit from the burden of debt". [HL2091]
§ Baroness AmosThe HIPC Initiative allows for additional assistance—so called "topping up"—to be granted at Completion Point for countries that have suffered a fundamental change in their economic circumstances due to external shocks. Completion point dates for Niger and Ethiopia have been delayed due to disagreement over the methodology for calculating "topping up". The UK believes that the deterioration in the real debt burden these countries face provides sufficient grounds for additional relief to be granted. We have therefore been lobbying other member states to make good their promises and provide "topping up" to Niger and Ethiopia, so that their debts are reduced to a sustainable level. We are pleased that the informal paper prepared by the IMF supports the existing methodology. Provided there are no objections by 1 April the methodology will stand, and Niger and Ethiopia are expected to be granted enhanced debt relief within the next month when they reach completion point.