§ Mr. StreeterTo ask the Chancellor of the Exchequer if he will estimate the likely cost to the British exchequer of the debt cancellation package agreed at the recent G7 Cologne summit. [100044]
§ Miss Melanie JohnsonThe debt cancellation package agreed at the G7 Cologne Summit and subsequently endorsed at the IMF/World Bank Annual Meetings provides for the cancellation of 90 per cent. or more of commercial debt in the Paris Club and 100 per cent. forgiveness of ODA debt. The UK has, of course, already cancelled all of its ODA loans ($5 billion in 98 prices). The costs of cancellation of commercial debts under the terms of the Cologne deal will fall to the Export Credit Guarantee Department (ECGD), where debt written off is scored as losses against ECGD's recoverable assets.