§ Mr. HepburnTo ask the Secretary of State for International Development what plans the Government have to reduce third world debt; and what information she has collated on those of other European Union member states. [11776]
§ Clare ShortThe Government have been at the forefront of global initiatives to tackle the unsustainable debt burden facing some developing countries, and led the way in securing the revision of the Heavily Indebted Poor Countries (HIPC) initiative, which was agreed at the annual meetings of the World Bank and the IMF in September 1999. So far, 23 countries have qualified for this exceptional relief. More than $23 billion of debt relief has been agreed for those countries, which together owe $74 billion, so a major part of their debt has been written off.
869WIn December 2000, the Government announced that the UK would go further than is required under the HIPC initiative and would provide 100 per cent. bilateral debt relief to countries when they qualify for HIPC relief. We will hold all debt payments received from HIPC countries in trust and, at that point, will return these payments to them. In addition, the UK has pledged over $300 million to the HIPC trust fund to meet the costs to the multilateral development banks of delivering HIPC debt relief. This includes our share of $85 million in EC contribution. We have also provided $43 million to assist the IMF with their share of such costs.
Most of our partner states in the European Union have also made bilateral contributions to the trust fund, on top of their share of the EC contribution. In addition, those member states that are major creditors deliver bilateral debt relief through the Paris Club of Official Bilateral Creditors to countries that have qualified for HIPC relief, with the majority providing 100 per cent. debt relief on their remaining bilateral debts.