§ Mr. SarwarTo ask the Secretary of State for International Development what proposals she has to lift further the burden of debt from developing countries. [145917]
§ Mr. FoulkesIn 2000, 22 countries qualified for exceptional debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) initiative, exceeding the international target of 20 countries. This has resulted in over $50 billion in debt relief being agreed for these countries, which will reduce their debts by almost two thirds on average. We are continuing to work closely with the international community to secure the full implementation of the enhanced initiative, and hope that a number of other countries will qualify for relief this year. However, conflict is a major barrier to making substantial further progress.
300WIn December 2000, the Government announced a further step. Debt payments received from HIPC countries will be held in trust, and returned to countries for poverty reduction when they qualify for HIPC.
The United Kingdom has taken, and will continue to take, a lead in the international effort to lift the burden of debt from eligible developing countries.