HC Deb 09 February 2000 vol 344 cc216-8W
Dr. Cable

To ask the Chancellor of the Exchequer how much of the debt owed to the United Kingdom by highly indebted poor countries relates to defence-related business expressed in (a) cash terms and (b) as a proportion of total debt. [108767]

Mr. Caborn

I have been asked to reply.

Debt owed by Heavily Indebted Poor Countries (HIPCs) to ECGD under Paris Club rescheduling arrangements amounts to £1.6 billion. In addition non-rescheduled debt in arrears and current exposure is some £300 million. Much of the rescheduled debt relates to contracts entered into during the 1970s and 1980s, when ECGD did not record exposure by the nature of the goods exported. However recent researches indicate that the amount of debt, all rescheduled, currently owed by HIPCs in respect of defence-related business is £12.7 million or 0.67 per cent. of the total owed.

Mr. Streeter

To ask the Chancellor of the Exchequer what criteria were used for selecting the countries that will no longer be supplied with military equipment under the guarantee of the Export Credits Guarantee Department. [109201]

Mr. Caborn

I have been asked to reply.

My right hon. Friend the Chancellor of the Exchequer announced on 11 January 2000 an extension to the UK's unilateral ban on export credits in respect of "unproductive expenditure" to include a further 22 countries. The additional countries are those which are allowed to borrow on highly concessional terms from the World Bank—the so called "IDA only" countries. These countries, while they do not have an historically large debut burden, can ill afford to take on new burdens of commercial loans for unproductive expenditure.

This built on the earlier initiative announced at the 1997 Commonwealth Finance Ministers' meeting in Mauritius, which applied to the so called Heavily Indebted Poor Countries. The ban now applies to 63 countries: a full list is below.

Applications for ECGD cover of projects in these countries will be measured against whether they meet the following indicative criteria:

  • assist social and economic development; or
  • be of maximum benefit to areas most affected by poverty; or
  • tackle problem areas where private investment is not available; or
  • wherever possible, earn foreign exchange; or encourage viable self-financing projects.

These principles need not necessarily preclude ECGD support for the sale of defence or dual use equipment, provided that such equipment is, for example, deemed essential for national security, or required to combat the drugs trade, piracy, smuggling etc. Support for projects must be cleared with the Department for International Development, who must be satisfied that the expenditure is consistent with the above.

  1. 1. Afghanistan
  2. 2. Albania
  3. 3. Angola
  4. 4. Bangladesh
  5. 5. Benin
  6. 6. Bhutan
  7. 7. Bolivia
  8. 8. Burkina Faso
  9. 9. Burundi
  10. 10. Cambodia
  11. 11. Cameroon
  12. 12. Cape Verde
  13. 13. Central African Republic
  14. 14. Chad
  15. 15. Comoros
  16. 16. Cote d'Ivoire
  17. 17. Democratic Republic of Congo
  18. 18. Djibouti
  19. 19. Equatorial Guinea
  20. 20. Eritrea
  21. 21. Ethiopia
  22. 22. Ghana
  23. 23. Guinea
  24. 24. Guinea-Bissau
  25. 25. Guyana
  26. 26. Haiti
  27. 27. Honduras
  28. 28. Kenya
  29. 29. Kiribati
  30. 30. Lao People's Democratic Republic
  31. 31. Lesotho
  32. 32. Liberia
  33. 33. Madagascar
  34. 34. Malawi
  35. 35. Maldives
  36. 218W
  37. 36. Mali
  38. 37. Mauritania
  39. 38. Mongolia
  40. 39. Mozambique
  41. 40. Myanmar
  42. 41. Nepal
  43. 42. Nicaragua
  44. 43. Niger
  45. 44. Republic of Congo
  46. 45. Republic of Yemen
  47. 46. Rwanda
  48. 47. Samoa
  49. 48. Sao Tome and Principe
  50. 49. Senegal
  51. 50. Sierra Leone
  52. 51. Solomon Islands
  53. 52. Somalia
  54. 53. Sri Lanka
  55. 54. Sudan
  56. 55. Tajikistan
  57. 56. Tanzania
  58. 57. The Gambia
  59. 58. Togo
  60. 59. Tonga
  61. 60. Uganda
  62. 61. Vanuatu
  63. 62. Vietnam
  64. 63. Zambia