§ Mr. LawsTo ask the Chancellor of the Exchequer what his estimate is of the total costs to the Exchequer of the recent UK developing world debt cancellation, as announced since 1 May 1997, in each year from 1997–98 to 2020–21; and if he will make a statement. [62392]
§ John HealeyPrior to 1 May 1997 the UK had already cancelled its aid loans to all the poorest countries and payments are written off as they become due. Remaining debts are owed to the Export Credits Guarantee Department (ECGD). The original highly indebted poor countries (HIPC) initiative was launched in October 1996 and in 1999 the UK was at the forefront of the international debate on debt relief in helping to secure agreement for the enhanced HIPC initiative. In December 1999, the UK Government announced that we would provide 100 per cent. debt relief on all ECGD debt for qualifying HIPCs to free up more resources for poverty reduction. The table sets out, by country and calendar year, all developing country debts to ECGD that have been written off since May 1997.
Some countries have benefited from both the original and the enhanced HIPC initiative but figures on the exact attribution between each initiative are not readily available. The total future costs to the Exchequer of debt 323W relief under the enhanced HIPC initiative will depend upon the progress of the remaining countries towards decision point, when they begin to receive interim debt relief on any payments due, and the subsequent completion point when debts are irrevocably cancelled.
Developing country debts to ECGD written off since 1 May 1997 £ million1 19972 1998 1999 2000 2001 Bolivia 0.00 6.49 0.00 0.00 12.31 Bosnia 0.00 3.22 0.00 0.00 0.00 Cameroon 4.74 2.71 3.15 5.06 9.17 Central African Republic 0.00 0.16 0.04 0.03 0.01 Cote D'Ivoire 1.14 2.82 1.17 0.00 0.00 Egypt 2.35 0.98 0.00 0.00 0.00 Ethiopia 0.00 0.00 0.29 0.52 0.23 Guinea Republic 0.00 0.00 0.00 0.12 0.52 Guyana 0.00 0.00 12.50 0.00 0.00 Madagascar 0.00 0.00 0.00 0.19 1.30 Malawi 0.00 0.00 0.00 0.00 0.10 Mauritania 0.11 0.05 0.66 0.53 0.53 Mozambique 3.63 5.39 12.45 0.00 78.54 Niger 0.21 0.31 0.34 0.72 1.23 Senegal 0.00 1.53 0.00 0.02 0.05 Tanzania 1.98 4.62 5.57 18.14 15.12 Togo 0.48 0.29 0.00 0.00 0.00 Uganda 0.00 8.68 0.00 5.96 0.00 Zambia 0.00 0.00 20.74 16.87 15.94 Totals 14.64 37.24 56.91 48.13 135.04 1Amounts written off. 2From 1 May 1997 onwards.