HC Deb 13 May 2004 vol 421 cc475-6W
15. Mr. Ben Chapman

To ask The Chancellor of the Exchequer, what discussions he held with international Finance Ministers on tackling world debt at the spring meetings of the IMF and World Bank. [172725]

John Healey

At the spring meetings of the IMF and World Bank, the Chancellor had various discussions with Finance Ministers. In addition to continuing to support countries in making progress through the Heavily Indebted Poor Countries (HIPC) initiative, it was recognised that there was an urgent need to support countries as they emerge from conflict and progress towards participation in the initiative.

It was also recognised that it was important to take forward work on the debt sustainability framework that the IMF and World Bank have proposed, in order to support long-term debt sustainability for poor countries.

However, debt relief alone is not sufficient. All HIPC countries will need additional aid to meet the millennium development goals (MDGS). That is why the UK's proposal for an international finance facility is so important. It can provide the much-needed substantial increase in resources—in the form of grants, concessional loans, or further debt relief—needed to attain the MDGS.

Dr. Gibson

To ask the Chancellor of the Exchequer what preparations he is making for discussions at the forthcoming meeting of the G7 Finance Ministers on tackling world debt. [172732]

John Healey

At the meeting of the G7 Finance Ministers, the Chancellor will be calling for the full implementation of the heavily indebted poor countries (HIPC) initiative, including additional relief to be provided to countries that have suffered economic shocks, in a full and timely manner. The Chancellor will also be calling for the HIPC initiative to be extended to ensure that eligible countries—many of which are in the process of exiting from conflict—are able to benefit from debt relief.

However, debt relief alone is not sufficient. All HIPC countries will need additional aid to meet the millennium development goals (MDGS.) The Chancellor will press the UK's proposal for an international finance facility, demonstrating that it can provide the much-needed substantial increase in aid—in the form of grants, concessional loans, or further debt relief—needed to attain the MDGS.