§ Mr. ReedTo ask the Chancellor of the Exchequer what assessment he has made of the impact of the HIPC initiative on the debt levels of the HIPC nations; and if he will make a statement. [18489]
§ Ruth KellyThe UK believes that the enhanced HIPC initiative is working and already 24 countries have qualified for debt relief. According to World bank and IMF estimates these countries will, on average, have their debts reduced by two-thirds, this will bring their debt service ratios to below the developing country average. The World bank and IMF also estimate that HIPC is delivering US$2.4 billion annually to those countries that have reached Decision Point, and that these countries are allocating about 75 per cent. of their debt relief to social services, such as education and health. Of these, four countries have exited the process and have benefited from irrevocable debt cancellation. The UK continues to work hard to ensure that the HIPC initiative is a success, and to ensure it delivers a sustainable exit from debt for the poorest countries. The UK continues to push for other countries to adopt its policies of offering 100 per cent. interim relief, and holding payment in trust for those countries that have to yet benefit from interim relief.