§ Lord Hyltonasked Her Majesty's Government:
What steps they are taking to reduce the Uganda Government's external debt to make possible higher spending in that country on health and education while limiting military expenditure; and whether and when Uganda will benefit from the Heavily Indebted Poor Countries Initiative (HIPC). [HL2439]
§ Lord WhittyUganda's Completion Point under the Heavily Indebted Poor Countries Initiative (HIPC) was reached in April this year, and Uganda became the first country to benefit from the initiative. It will reduce Uganda's debt by some $650 million, or about $35 million each year, starting now. The United Kingdom has supported early and favourable treatment for Uganda under the HIPC because of its consistent, long record of prudent and constructive economic policy. In addition to the UK's bilateral contributions through further Paris Club debt relief, we have donated $10 million to help the African Development Bank fund its share of debt relief for Uganda. Uganda's recent (June 1998) budget has announced significant increases in spending for primary education and health care. There has been a regrettable increase in defence spending but military expenditure is still limited to less than 1.9 per cent. of gross domestic product. The UK last year gave £20 million to enable Uganda to implement its economic programme in 1997–98, including the introduction of universal primary education. The Secretary of State will consider in due course proposals for further support of this kind over the next two years.