§ Q148. Mr. CorbynTo ask the Prime Minister what action the Government are taking to reduce the debt burden on poor countries.
§ The Prime MinisterFollowing my right hon. Friend the Chancellor's initiative, agreement was reached at the Toronto summit for concessional rescheduling through the Paris club for the poorest and most heavily indebted countries which are following approved adjustment programmes. The United Kingdom and others will reduce interest rates to prevent debt compounding. The United Kingdom has also written off £1 billion of old aid loans, of which nearly £300 million were for sub-Saharan Africa. We have also agreed to subsidise loans to the poorest countries of up to about £750 million through a special IMF facility, the enhanced structural adjustment facility, of £4.5 billion. This makes us the largest single contributor to the interest subsidy account.