§ Mr. CousinsTo ask the Chancellor of the Exchequer what is the size of the British Government debt outstanding with each of the less developed countries of Asia, Africa and South America as at 31 March 1983 and the most recent available date; what are the rates of interest being applied to such debt; what is the interest income from such debt; what this is expressed as a 547W proportion of ODA aid to such countries in the most recent financial year; and what steps the Government have taken or propose to take to write off such debt.
§ Mr. MaplesThe amounts of principal outstanding on British Government ODA-managed loans to developing countries were as follows:
£ million 31 March 1983 1 August 1990 Asia, Mediterranean, Pacific 185 144 Africa 186 116 Central and South America, Atlantic and Caribbean 106 170 These figures exclude repayments due from India, for which we have agreed to provide an equivalent amount of local cost aid under our policy or retrospective terms adjustment (RTA). Rates of interest applied to loans have varied; but current policy is to charge 0 per cent. or 1.75 per cent. on new loans.
Total receipts of interest on aid loans in the 1989–1990 financial year were £5.981 million. This represented 2.6 per cent. of United Kingdom bilateral aid to countries with ODA loans outstanding in the same financial year.
The Government have cancelled through their RTA policy the aid debts of 22 of the poorest countries at a total value of around £1 billion, including India; and is ready to consider further such cancellations in appropriate cases.