§ Mr. Fraserasked the Chancellor of the Exchequer if he will make it his policy to propose to his fellow Ministers in the European Community that the Community encourages the conversion of loans to the poor countries of sub-Saharan Africa to grants: and if he will propose to them other steps to relieve the burden of that part of the world.
§ Mr. LilleyMost of our European Community partners have already converted their old aid loans to grants for the poorest and most heavily indebted countries in sub-Saharan Africa as the United Kingdom has done. My right hon. Friend the Chancellor of the Exchequer will continue to press for further support from all Paris Club creditors for this proposal and also for his proposal to reduce the interest rate charged on rescheduled officially guaranteed debt. The Paris Club has already implemented the third part of my right hon. Friend's plan to help sub-Saharan Africa. To date, five African countries have been granted longer repayment periods when rescheduling through the Paris Club.