§ Mrs. SpelmanTo ask the Secretary of State for International Development if she will make a statement on the impact of changes in commodity prices on debt sustainability and the HIPC Initiative. [58631]
§ Clare ShortAt the Annual Meetings of the World Bank and IMF in Ottawa last November, we raised this concern and asked Bank and Fund staff to revisit the debt sustainability analyses of all commodity dependent low-income countries, including the Heavily Indebted Poor Countries (HIPC). The IMF and World Bank analysis, published last month, shows that, although the situation varies from country to country, the external debt indicators for most HIPC countries have deteriorated, and a result several HIPC countries now face unsustainable debt burdens. Following UK pressure, the World Bank and IMF Boards have agreed to provide additional relief countries in this situation. This was reconfirmed at the Spring Meetings last month.
§ Mrs. SpelmanTo ask the Secretary of State for International Development what assessment she has made of the impact of HIV/AIDS on debt sustainability in developing countries. [58632]
§ Clare ShortWhen assessing developing countries' debt sustainability, in the context of the Heavily indebted Poor Countries (HIPC) Initiative, the IMF and World 437W Bank work with governments in the countries themselves to produce detailed forecasts of export growth, GDP growth and new borrowing. These forecasts take account of all the various factors affecting the countries' economic situation, including the impact of HIV/AIDS, and the need for concessional borrowing to finance their poverty reduction strategies.