§ The Earl of Sandwichasked Her Majesty's Government:
Whether they agree with the conclusion of a new report by Christian Aid that despite promises by the Government to cancel 100 per cent of the debt of the poorest countries, less than 4 per cent had been delivered in time for the G8 summit in Okinawa. [HL3536]
§ Lord McIntosh of HaringeyThe Government are meeting their promise to cancel 100 per cent of the debts of countries as they go through the heavily indebted poor countries initiative (HIPC). Once countries reach their decision point under the HIPC initiative they can immediately stop making payments on all their debts outstanding to the UK Government.
So far nine countries have reached their decision point, of which eight owed money to the UK. For these countries all payments to the UK Government have already ceased. In total the debt relief to these countries afforded by the HIPC initiative and the Government's 100 per cent debt relief policy will total £241 million.
At Okinawa the G7 expressed their hope that a further 100 countries would reach decision point by the end of 2000. If they did, the total amount that the UK Government would be writing off for these 20 countries would be £659 million. The key aim is to release resources for poverty reduction. The 100 per cent policy and the HIPC process are designed so that the links between debt reduction and how these resources can be used as part of a comprehensive, country owned poverty reduction strategy is clearly established.