§ Mr. TimmsTo ask the Chancellor of the Exchequer what assessment he has made of the debt reduction initiative proposed by the World bank. [40337]
§ Mrs. Angela KnightThe Government have been pressing hard for a resolution to the debt problems of the poorest, most indebted countries. We therefore very much welcome the successful launch of the heavily indebted poor country initiative, which is based on UK proposals. We fully support its objective of ensuring that, having demonstrated a track record of sustained strong economic policy performance, these countries are able to achieve overall external debt sustainability. The Government welcome the participation in the initiative of all major creditors—the International Monetary Fund, the World bank, and the Paris club of official bilateral creditors—which have agreed to act in a co-ordinated manner, sharing the costs of the initiative equitably. We also welcome the decision to implement the initiative flexibly, on a case by case basis, and with full participation by debtor Governments. Implementation for the first potentially eligible countries is expected to begin before the end of the year.