§ Sir Sydney ChapmanTo ask the Chancellor of the Exchequer if he will make a statement about the Government's policy on tackling the debts of the poorest nations. [29632]
§ Mrs. LiddellThe Government are firmly committed to supporting debt relief for the poorest countries, including the relief offered under the Heavily Indebted Poor Countries (HIPC) initiative. In the IMF and World Bank Executive Boards, we have actively supported granting HIPC relief to Uganda, Bolivia, Burkina Faso and Guyana. We have also pressed for movement on other potential beneficiaries, including Mozambique. We have offered to provide up to $10 million to help Mozambique achieve debt sustainability on top of debt relief and assistance the UK has already committed.
Last September, the Chancellor of the Exchequer, in his Mauritius Mandate statement, called on the international community to commit itself to dealing with the problem of unsustainable debt burdens faced by some poor countries once and for all. This represents a challenge for both creditors and debtors. Creditors should ensure that relief mechanisms are sufficiently flexible to deal with all cases. Debtors should show a commitment to sound economic policies, with a focus on productive expenditures such as basic healthcare and primary education, and demonstrate transparent and accountable decisionmaking. Debt relief is necessary to allow such countries to continue to implement such policies, which are aimed at increasing the pro-poor economic growth that is needed for lasting poverty reduction.