§ Mr. GapesTo ask the Secretary of State for Foreign and Commonwealth Affairs what action Her Majesty's Government are taking to reduce the financial crisis and debt burden faced by the Government of Zambia.
§ Mr. Lennox-BoydWe have pledged or disbursed £40 million in balance of payments grants, in addition to a programme of technical assistance costing some £15 million this year, and have rescheduled service payments totalling £4.1 million due in 1992 on past British aid loans. We have also told the Zambian Government that, provided its economic reform programme remains in place, we are prepared to consider cancellation of all its outstanding aid debt to the United Kingdom.
Other official debt owed to the United Kingdom and other government creditors will be considered in the context of the Paris club. Subject to International Monetary Fund approval of Zambia's economic reform programme, adherence to which would result in the clearance of Zambia's arrears to the IMF, we shall be pressing for Zambia to receive Trinidad terms at the Paris club's July meeting. These terms resulted directly from proposals made by the Prime Minister, in 1990, to relieve the burden of debt on the poorest, most heavily indebted countries.
§ Mrs. ClwydTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about the attitude of Her Majesty's Government regarding424W debt relief for Zimbabwe; and if it is his intention that Zimbabwe should be eligible for the full Trinidad terms following the meeting of the Paris club on 23 July.
§ Mr. Lennox-BoydZimbabwe has consistently serviced her debts in full and, as a result, has maintained her creditworthy status. Our understanding is that the Government of Zimbabwe are determined to continue this policy, and do not intend to apply for any debt relief.
Our approach has been to focus on Zimbabwe's overall financing needs. We are supporting Zimbabwe with a substantial aid programme which totalled over £53.4 million in 1991.