§ Mr. Ben ChapmanTo ask the Secretary of State for International Development if she will make a statement on the steps she is taking to(a) reduce and (b) cancel the bilateral debt of poor countries. [122587]
§ Mr. FoulkesWe have already cancelled our aid debts for all of the poorest countries, not just for countries who qualify for relief under the Heavily Indebted Poor Countries (HIPC) Initiative. Their remaining bilateral debts to the UK are owed to the Export Credits Guarantee Department. These are being reduced under the enhanced HIPC Initiative. However, last December, it was announced that the UK will go further and provide 100 per cent. debt relief on all bilateral export credits for qualifying HIPC countries. This action will free up more resources in HIPC countries for investment in poverty reduction programmes.