Debt Relief

HC Deb 14 May 1990 vol 172 cc339-40W

63. Mr. Corbett

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the debt relief gained by developing countries since the Brady plan was announced.

Mrs. Chalker

The Government welcome progress under the strengthened debt strategy, most recently reaffirmed at the interim committee of the IMF on 7 May. The strategy, including the associated economic reforms, will have a significant impact on debt problems facing those countries which participate. But it is early days to reach any definite conclusion.

96. Mr. David Marshall

To ask the Secretary of State for Foreign and Commonwealth Affairs what action the Government are taking to encourage the writing off of debt owed by developing countries to the European Investment Bank.

Mrs. Chalker

None. Like all the multilateral development banks, the European Investment Bank is a preferred creditor and we believe that it should be repaid on time.

88. Mr. Eastham

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the levels of debt relief provided under the Toronto plan for the poorer countries in Africa.

76. Mr. Dunnachie

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the levels of debt relief received by poorer African countries under the Toronto plan.

Mrs. Chalker

According to World Bank estimates, the first 12 concessional reschedulings of official debt obtained by the poorest countries under the Toronto plan reduced these countries' debt servicing obligations in 1989 by an additional $50 million relative to conventional Paris Club reschedulings. These benefits will increase over time as more eligible countries reschedule under the Toronto terms (16 have now done so), and as progressively more of the debt stock is covered in successive Toronto reschedulings.

79. Mr. Norman Hogg

To ask the Secretary of State for Foreign and Commonwealth Affairs what he perceives as the actual benefits gained by developing countries from the Brady plan.

Mrs. Chalker

The Government welcome progress under the strengthened debt strategy, most recently reaffirmed at the interim committee of the IMF on 7 May. The strategy, including the associated economic reforms, will have a significant impact on debt problems facing those countries which participate.