HC Deb 02 April 1990 vol 170 c415W
91. Mr. John Garrett

To ask the Secretary of State for Foreign and Commonwealth Affairs what action the Government are taking to resolve the debt crisis of developing countries.

Mrs. Chalker

The Government will continue to provide financial assistance for indebted countries through IMF and World Bank, the rescheduling of official debt in the Paris Club and, where appropriate, bilateral aid. We will also continue to implement the special measures for the poorest debtors agreed at the 1988 Toronto economic summit. For middle-income debtors, specific support for commercial bank debt reduction will continue to be available through the IMF and World Bank. All this assistance is conditional on debtor countries pursuing economic reforms to lay the basis for sustained growth, as such reforms are essential for a lasting resolution of their debt problems.

99. Mr. Campbell-Savours

To ask the Secretary of State for Foreign and Commonwealth Affairs what discussions he has had with members of the European Commission and Ministers of member states concerning the writing-off of debt owed by developing countries to the European development fund.

Mrs. Chalker

Discussion has concentrated on whether to cancel outstanding repayments on transfers made under the Stabex system during the first Lomé convention. I expect a decision to be taken shortly.

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