§ Q195. Mr. CorbynTo ask the Prime Minister what action she proposes to take to reduce the debt burden on the poorest countries.
§ The Prime MinisterAfter the initiatives of my right hon. Friend the Chancellor, agreement was reached at the Toronto economic summit last year and subsequently implemented in the Paris club for concessional rescheduling of the debt of the poorest countries which are following approved adjustment programmes. The United Kingdom and other official creditors have reduced interest rates to prevent debt compounding. In addition, the United Kingdom has written off £1 billion of old aid loans, of which nearly £300 million were for sub-Saharan Africa, and all the United Kingdom's new aid to the poorest countries is now in grant form. The United Kingdom has also agreed to subsidise loans of up to about £750 million through a special IMF facility, the enhanced structural adjustment facility, of £4.5 billion to the poorest nations. That makes the United Kingdom the largest single contributor to the interest subsidy account. These are all substantial measures which the United Kingdom is taking to alleviate the debt burden on the poorest countries.