§ Sir John StanleyTo ask the Chancellor of the Exchequer why the United Kingdom, in implementing its rescheduling of the official debt of the poorest and most heavily indebted countries, had chosen only the option of lowering interest rates; and whether he will also consider exercising the option of writing-off one third of the debt service being rescheduled as is being done by other Paris club creditor countries.
§ Mr. LawsonThe Paris club has agreed that the options of reducing interest rates and writing off one third of the debt service being rescheduled are of comparable value. The United Kingdom favours reducing interest rates as Her Majesty's Government believe, in common with the majority of creditor Governments, that this is the best method of preventing the burden of debt from compounding.
§ Sir John StanleyTo ask the Chancellor of the Exchequer (1) if he will list the countries to which he estimated Export Credits Guarantee Department's total exposure at around £1 billion in his reply to the right hon. Member for Tonbridge and Mailing on 4 November,Official Report, column 801;
(2) if he will list the poorest and most heavily indebted countries eligible for exceptional debt relief from the Parris club of Governemnt creditors provided that they are following an approved adjustment programme.
§ Mr. LawsonThe Paris club proceeds by consensus and on a case by case basis. It is therefore not possible to list the countries to which the Paris club will grant exceptional debt relief. The countries to which ECGD's exposure is estimated to be £1 billion are those which, when preparing estimates of costs to the Exchequer of exceptional debt relief earlier this year, were thought likely to be eligible. The criteria used in drawing up this list were poverty, indebtedness and the assumption that an internationally approved adjustment programme will be in place at the time of rescheduling.