§ Mr. SpellarTo ask the President of the Board of Trade how much money Nigeria owes to the Export Credits Guarantee Department; which steps are being taken to recover this money; and what action is being taken to prevent further losses. [30435]
§ Mr. NeedhamAmounts due to ECGD have been rescheduled under bilateral agreements between Her Majesty's Government and the Government of Nigeria signed under the auspices of the Paris Club. This is the normal mechanism for the recovery of sovereign debt. Since 1986 three agreements have been signed with Nigeria. Nigeria is currently in substantial arrears under these agreements. The total amount outstanding, excluding delay interest, is £2.3 billion. The Paris Club collectively, and individual creditors including HM Government, continue to press Nigeria to adopt policies aimed at economic reform and to regularise its relations with the international financial institutions. Sustained 671W economic reform is regarded as the best method of promoting economic growth which in turn will allow Nigeria to meet its obligations under these agreements.
The debts covered by these agreements relate to contracts signed before 1 October 1985. ECGD has been off cover for new medium term business since 1 February 1984.