§ Mr. VazTo ask the Secretary of State for International Development what criteria will be used to determine which developing countries are given priority in respect of reducing their debts to the United Kingdom. [2669]
§ Clare ShortWe will give priority to those countries which are eligible for concessional Paris Club relief. These are low income countries whose debt burden is unsustainable, and which are undertaking economic reform programmes agreed with the IMF. Our aim is that debt relief should be part of a wider commitment by debtors to economic reform, to ensure that the relief encourages economic development and leads to lasting poverty reduction.
§ Mr. VazTo ask the Secretary of State for International Development how she intends to reduce the debt owed to Britain from developing countries in the next year. [2666]
§ Clare ShortThe United Kingdom will play a full part in rescheduling negotiations at the Paris Club of Official Creditors, and will push for swift and comprehensive implementation of the recently agreed Heavily Indebted Poor Countries Initiative.
§ Mr. VazTo ask the Secretary of State for International Development what is the estimated debt to Britain from developing countries. [2665]
§ Clare ShortIn November 1996 (the latest date for which figures are currently available) the total outstanding rescheduled debt owed to the Export Credits Guarantee Department by countries defined by the World Bank as developing countries (lower and middle income countries) and which have had a Paris Club debt rescheduling was £7,434.58 million.
At the end of March 1997 the total value of development loans owed to the Overseas Development Administration was £239 million.
§ Mr. VazTo ask the Secretary of State for International Development what plans she has and over what time scale to cancel the debt owed to Britain by developing countries. [2667]
§ Clare ShortThe United Kingdom has already forgiven aid loans worth £1.2 billion. We are willing to consider similar relief on aid debts for the remaining low374W income debtors which cannot service their debt and have demonstrated their ability to use debt relief to promote economic development and reduce poverty.
§ Mr. VazTo ask the Secretary of State for International Development what research her Department has evaluated on measures taken or evaluated by other countries to reduce the debts owed by developing countries. [2668]
§ Clare ShortWe have studied with interest assessments from a number of sources, including non-governmental organisations, the OECD' s Development Assistance Committee, the international financial institutions and the Commonwealth Secretariat.