§ Miss LestorTo ask the Chancellor of the Exchequer what criteria govern the choice of country benefiting from debt relief from the United Kingdom.
§ Mr. LilleyThe United Kingdom in common with other official creditors reschedules countries' debts in the Paris Club if they are following IMF approved adjustment programmes and would otherwise be unable to meet their debts service obligations. Reschedulings over longer periods are allowed to the poorest, most heavily indebted of such countries. The criteria which will govern which countries will benefit under the framework for concessional reschedulings agreed at the Toronto summit will be decided by the Paris Club. The United Kingdom also converts old aid loans into grants following the 1978 UNCTAD resolution 165 for countries which have income per head of less than $425 a year and which are following IMF approved adjustment programmes.