§ Mrs. ClwydTo ask the Chancellor of the Exchequer what would be the estimated cash flow saving per year to Tanzania and Uganda if all official bilateral creditors were to implement Trinidad terms for their debt.
§ Mr. MaplesTanzania and Uganda owe bilateral official creditors about $2.7 billion and $0.5 billion respectively. Annual interest payments required in order to prevent these debt stocks from continuing to rise would be about $150 million for Tanzania, and $15 million for Uganda. These estimates take account of the different mix of concessional/non-concessional loans outstanding to the two countries. In order to repay the full stock of debt, average future total payments would have to be even higher. The application of Trinidad terms by all bilateral official creditors would mean no payments would be made for five years, with amounts paid rising steadily thereafter, so that the one third of the stock of debt remaining after the write-off would have been repaid after 25 years.