HC Deb 01 June 1998 vol 313 cc35-6W
Mrs. Ann Winterton

To ask the Secretary of State for International Development what initiatives her Department is taking to reduce the need for hard currency to service the international debt of countries which are major producers of illicit drugs. [43169]

Clare Short

Such countries are not producing illicit drugs in order to generate the hard currency needed to service international debt. In general we are ready to consider using our bilateral aid programme into finance innovative mechanisms for converting debt into local currency, for example through debt swaps, if we are so requested. But we would need to be convinced that this was the best way of contributing to the reduction of poverty.

We remain strong supporters of the Heavily Indebted Poor Countries (HIPC) Initiative, which by writing off unpayable debt will reduce the total debt of qualifying countries to an affordable level, thus reducing the amount of hard currency needed for debt service. Bolivia should receive $450 million of HIPC debt relief this September.

Mr. Nicholas Winterton

To ask the Secretary of State for International Development if she will calculate the total amount(a) of aid given to developing countries by the United Kingdom and (b) received from these countries by the United Kingdon in debt service in 1997. [43091]

Clare Short

The latest figures available for development assistance provided from Department for International Development programmes are for 1996–97, when development assistance (excluding administration costs, but including contributions to multilateral organisations) to developing countries amounted to £1,837.8 million. Figures for 1997–98 will not be available until the end of the year, when they will be published in the 1998 edition of "British Aid Statistics".

Debt service received by the Department for International Development in respect of outstanding bilateral aid loans amounted to £43 million in 1996–97: principal repaid is retained for use within the development assistance budget.

Other debt service repayments in respect of other bilateral debt agreements are a matter for the Chancellor of the Exchequer.