§ Mr. CanavanTo ask the Chancellor of the Exchequer what recent discussions he has had with the World Bank and the IMF about the debt problems of developing countries; and if he will make a statement. [61720]
§ Ms HewittThe Chancellor spoke about debt relief at the Annual Meetings of the IMF and World Bank in October, calling for: a comprehensive review of the H1PC initiative to take place prior to the 1999 Annual meetings; the IMF and World Bank to take forward urgently work on how to help post-conflict countries, especially those with large arrears to the IFIs; the international community to aim to ensure that 22 countries could have reached their decision points by the end of 1999. The first two issues have now been agreed by the IMF and World Bank.
Following the devastation caused in Central America by hurricane Mitch, the Chancellor and the Secretary of State for International Development wrote to the IMF, World Bank and Inter-American Development Bank on 10 November, urging these institutions to consider various measures for reducing the debt burdens of the countries worst hit, especially Honduras and Nicaragua. Amongst other things, they suggested setting up a Trust Fund to help pay the debt service that these countries owe the IFIs. The UK has donated £10 million to the Trust Fund, which is presently being set up by the World Bank.
At a recent meeting in London with the President of the World Bank, the Chancellor discussed how the HIPC initiative could be used to help secure further debt relief for Honduras and Nicaragua—the poorest countries in the region.