§ Mr. ConnartyTo ask the Secretary of State for International Development what steps her Department is taking to ensure that its additional debt relief beyond HIPC provides effective assistance in tackling poverty in indebted countries. [91679]
§ Clare ShortBefore a country can qualify for debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative, it must produce an interim Poverty Reduction Strategy Paper (PRSP) at Decision Point, setting out what action it will take to develop a full PRSP. To reach Completion Point, the full PRSP must be in place, and under implementation for at least one year. The PRSP sets out the policy action governments are taking to reduce poverty and provide a budgetary framework not only for spending the savings from debt relief but also for allocating all other aid and government revenues that they have the greatest impact on poverty reduction. We believe strongly in the value of the PRSP process, which is leading to improved economic management and social reform. The additional bilateral debt relief provided by the UK goes towards these poverty reduction programmes. The UK is also aligning its development assistance programmes with the PRSPs.