HC Deb 19 October 1992 vol 212 cc184-5W
Mrs. Clwyd

To ask the Chancellor of the Exchequer (1) what additional foreign exchange savings would accrue to developing countries if the Trinidad terms originally proposed by the Prime Minister had been accepted by the Paris club compared to the terms currently in use;

(2) what foreign exchange savings have been achieved by developing countries whose debt has been processed by the Paris club under the Trinidad terms.

Mr. Nelson

The debt reduction provided under Trinidad terms is assessed in present value terms and this cannot he reliably translated into estimates of foreign exchange earnings. Trinidad terms are designed to deliver up to 50 per cent. reduction in the present value of debts consolidated under the agreements. It is not possible to anticipate the outcome of consideration of reduction, of the whole stock of debt, which creditors are committed to undertake provided that certain conditions are met.

The debt relief agreed to by creditors at the Paris Club is informed by and related to an independent estimate of the future foreign exchange financing needs of individual debtors.

Mrs. Clwyd

To ask the Chancellor of the Exchequer if he will list, for each country benefiting from debt: relief under the Trinidad terms,(a) how the debt to be dealt with is calculated, (b) the percentage of total external debt of each country that this constitutes and (c) the level of relief and rescheduling that has been given.

Mr. Nelson

The details of individual debtors' positions are confidential to the country concerned. Debts eligible for Trinidad terms debt reduction are medium and long term bilateral official debt which are contracted before a specified cut-off date and which have not previously been subject to a concessional debt restructuring agreement at the Paris Club. The amount of relief provided is dependent upon the distribution of debt between individual creditors and the method of debt relief chosen by each creditor.

Mrs. Clwyd

To ask the Chancellor of the Exchequer how many developing countries have benefited from the Trinidad debt relief terms; which countries are due to be dealt with by the Paris Club; and when such action will be taken.

Mr. Nelson

Eight countries have so far benefited from Trinidad terms debt reduction at the Paris Club. The future programme of the Paris Club is driven by requests from the debtor countries.