HC Deb 26 June 2002 vol 387 cc870-1W
11. Mr. Plaskitt

To ask the Secretary of State for International Development how her Department is working with the EU to reduce delays in delivering debt relief due under the HIPC initiative to poor countries. [62478]

Clare Short

In 1999, the UK helped to secure, through the European Union, a pledge of 1 billion euros towards debt relief for the heavily indebted poor countries (HIPC), from the European Development Fund (EDF). This was to be provided in the form of 680 million euros for the HIPC trust fund and 320 million euros in debt relief for the African, Caribbean and Pacific (ACP) countries' debts owed to the European Investment Bank (EIB). To date 650 million euros have been spent, with a further 300 million euros planned for disbursement this year.

17. David Taylor

To ask the Secretary of State for International Development how her Department will ensure that poor countries which do not qualify for the opportunity of HIPC debt relief achieve sustainable debt funding. [62484]

Clare Short

Countries that are not eligible for debt relief under the heavily indebted poor countries (HIPC) initiative can still achieve sustainable debt levels through the traditional debt relief mechanisms available. This includes a stock-of-debt operation under Naples terms (up to 67 per cent. cancellation of debt) by the Paris Club and comparable treatment by non-Paris Club official bilateral and commercial creditors. To qualify for HIPC relief, a country must be judged to have an unsustainable debt after the full application of traditional debt relief measures, and to have met the other HIPC requirements. It is therefore possible for countries, as in the case of the Comoros, the Gambia and Malawi, to be added to the list of HIPC countries, depending on their circumstances.

20. Mr. MacDougall

To ask the Secretary of State for International Development what progress is being made on debt relief for poor countries; and if she will make a statement. [62488]

Clare Short

I refer my hon. Friend to the answer I gave the hon. Member for Birmingham, Northfield (Richard Burden) on 21 June 2002,Official Report, column 583W.

Ms Munn

To ask the Secretary of State for International Development how her Department is working with the European Union to reduce delays in delivering debt relief due under the HIPC Initiative to poor countries. [62487]

Clare Short

In 1999, the UK helped to secure, through the European Union, a pledge of 1 billion euros towards debt relief for the heavily indebted poor countries (HIPC), from the European development fund (EDF). This was to be provided in the form of 680 million euros for the HIPC trust fund and 320 million euros in debt relief for the African, Caribbean and Pacific (ACP) countries' debts owed to the European Investment bank (EIB). To date 650 million euros have been spent, with a further 300 million euros planned for disbursement this year.