§ Mr. DavidsonTo ask the Chancellor of the Exchequer if he will list the countries for which debt has been written off by Britain, together with the amounts written off in each case. [148121]
§ Miss Melanie JohnsonThe UK has written off, and is writing off, debt through multilateral initiatives such as the HIPC initiative, and through additional bilateral initiatives. Under the HIPC initiative the UK stands ready to write off all £1.9 billion still owed to the UK by the 41 countries potentially eligible. This is in addition to the £400 million of ECGD debt already written off under previous initiatives, and the £350 million of aid debt already written off for HIPCs. This aid debt is shown in the table.
£million Aid debt cancelled Countries at Decision Point Bolivia 0.1 Guyana 58.9 Honduras 5.0 Nicaragua 0.6 Gambia 5.2 Malawi 30.7 Mozambique 21.8 Senegal 1.1 Tanzania 3.4 Uganda 22.1 Zambia 55.9 Countries not yet at Decision Point Ethiopia 2.5 Ghana 50.9 Cote D'lvoire 3.5 Kenya 67.6 Sierra Leone 10.4 Sudan 9.9 Laos 0.03 The amount of the £1.9 billion written off at a given stage depends on progress through the HIPC initiative. When a country reaches the first stage, known as Decision Point, the UK provides 100 per cent, relief on all payments due. When a country then reaches Completion Point all debt is irrevocably written off.
413WOn 2 December the Chancellor announced in addition that for all countries not yet at Decision Point, any payments made will be held in trust and returned when they can show that the savings from debt relief will lead to poverty reduction.
An irrevocable commitment to 100 per cent. reduction has been made in respect of Uganda, who reached Completion Point under the HIPC initiative in 2000, and who previously owed the UK £5.5 million. Uganda has also had around £5 million of former-CDC debt cancelled.
The UK is providing 100 per cent. interim relief on payments in respect of £700 million of debt, owed by HIPC countries that have reached Decision Point under the HIPC initiative on the basis of a commitment to poverty reduction, but which are yet to reach Completion Point. The debt owed to ECGD by these countries is as follows:
£ million Benin 2.7 Bolivia 17.4 Cameroon 74.5 Gambia 0 Guinea 5.3 Guinea-Bissau 0 Guyana 41.7 Honduras 0 Madagascar 25.5 Malawi 3.9 Mali 4.2 Mauritania 6.9 Mozambique 91.2 Nicaragua 1.0 Niger 10.9 Rwanda 0.1 Sao Tome et Principe 0 Senegal 1.5 Tanzania 115.0 Zambia 239.2 Interim relief is also being given to these countries on around £60 million of debt formerly held by CDC plc.
In respect of Burkina Faso, which owes the UK £1.0 million, interim relief has been suspended in light of the continuing role of the Government of Burkina Faso in undermining the peace process in Sierra Leone. Payments from Burkina Faso will be held in trust.
Nineteen countries have not so far qualified for debt reduction, in most cases because of conflict. In respect of a further £1.3 billion of debt owed by these countries, the Government have announced that no further benefit will accrue to the UK. Payments will be held in trust and earmarked for spending in support of poverty reduction strategies once those countries have reached DP. The debt owed to ECGD by these countries is as follows:
414W
£ million Angola 118.6 Burundi 0 Central African Republic 0.5 Chad 0 Congo 143.1 DR Congo 165.5 Cote D'lvoire 48.0 Ethiopia 15.4 Ghana 216.7 Kenya 52.9
£ million Laos PDR 0 Liberia 18.4 Myanmar 23.1 Sierra Leone 3.6 Somalia 29.2 Sudan 374.9 Togo 15.7 Vietnam 54.4 Yemen 3.3