HL Deb 18 May 2000 vol 613 cc32-3WA
The Earl of Sandwich

asked Her Majesty's Government:

How many countries have reached decision point in the Heavily Indebted Poor Countries initiative; how many will complete the process by the end of this year; and in how many countries there will be further delay. [HL2328]

Lord McIntosh of Haringey

Five countries have now reached decision point under the enhanced HIPC initiative (Uganda, Bolivia, Mauritania, Tanzania and Mozambique) and are receiving debt relief. All five benefit from the UK Government's decision to provide 100 per cent relief to countries qualifying under the HIPC initiative.

G7 Finance Ministers, meeting in Washington at the time of the IMF Spring Meeting last month, reaffirmed their wish to see the IMF, the World Bank and eligible countries co-operate closely to secure the implementation of the HIPC initiative with the aim that the eligible countries reach their decision point by the end of 2000, in line with the Cologne target (three-quarters of eligible countries).

The Earl of Sandwich

asked Her Majesty's Government:

How much of the 100 billion US dollars in debt relief announced at the G8 summit in Cologne last year had already been promised under the Naples terms; how much has not been delivered; and, in the case of Tanzania, what has been its reduction in debt service under the latest Heavily Indebted Poor Countries initiative. [HL2329]

Lord McIntosh of Haringey

Of the $100 billion of debt relief promised under the enhanced HIPC initiative, approximately $30 billion will be provided as relief under traditional debt relief mechanisms (Naples terms rescheduling from Paris Club creditors). The remaining $70 billion of debt relief will further reduce the debts of countries that would otherwise have had unsustainable debt burdens remaining, even after traditional debt relief mechanisms.

In the case of Tanzania, the assistance provided by the HIPC Initiative will amount to $2 billion—more than half of the country's total debt. The assistance provided by the IMF will cover on average 58 per cent of debt-service obligations to the Fund and the World Bank's assistance will cover over 69 per cent of Tanzania's debt service obligations to the Bank. Overall, the assistance provided under the HIPC Initiative will mean that Tanzania's ratio of debt service to exports will fall from 25 per cent to approximately 9.5 per cent in 2000–01 and then to 5 per cent in the future.