HC Deb 29 July 1998 vol 317 cc279-80W
16. Mr. Savidge

To ask the Secretary of State for International Development what steps her Department is taking to reduce the debt burden of the world's poorest and most indebted countries. [51335]

Clare Short

As part of the Heavily Indebted Poor Countries (HIPC) Debt Initiative, my Department has provided over £6 million to help the African Development Bank meet its share of the costs for Uganda, as well as making £10 million funds available to help Mozambique qualify for HIPC relief. We have also provided over £25 million of interim debt relief to Tanzania and Mozambique. Part of a new £30 million pledge for Rwanda will be earmarked for a multilateral debt trust fund, established to ensure Rwanda is able to meet its debt obligations during the period leading up to HIPC eligibility. Under the Commonwealth Debt Initiative, eight countries have benefited so far, at a cost of £25 million, and we have provided £400,000 to enable Debt Relief International to assist countries with their debt management. With the additional resources provided under the Comprehensive Spending Review, I look forward to doing more to help reduce the constraints which debt imposes on development.

27. Sir Sydney Chapman

To ask the Secretary of State for International Development if she will make a statement on progress to reduce the debt of poorer developing nations. [51348]

Clare Short

The Government's Mauritius Mandate presses for the speedy and flexible implementation of the Heavily Indebted Poor Countries (HIPC) Initiative. This was endorsed by G8 Leaders at their Summit held in Birmingham in May. So far, six countries have qualified for debt relief under the Initiative, and decisions on a further three countries are expected this year. The IMF and World Bank are currently undertaking a review of HIPC which will be considered by Governors at the Annual Meetings of the IMF and World Bank in October.

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