Written Answers. - Third World Debt.
John Perry
Question:
375
Mr. Perry
asked the
Minister for Finance
the plans, if any, he has in place to press for the cancellation by the year 2000 of developing countries unpayable debts; if his attention has been drawn to the fact that many countries will receive little or no reduction in their debt repayments; and if he will make a statement on correspondence (details supplied) in this regard.
[17487/99]
John Gormley
Question:
381
Mr. Gormley
asked the
Minister for Finance
if he will be attending the IMF/World Bank meeting in Washington in late September 1999; if he will be making a strong case for debt cancellation proposed by the Jubilee 2000 Committee; and if he will make a statement on the matter.
[18530/99]
Richard Bruton
Question:
396
Mr. R. Bruton
asked the
Minister for Finance
if his attention has been drawn to Jubilee 2000, the Third World debt cancellation campaign; the extent to which the campaign has been reflected in the Government's position; and if he will make a statement on the matter.
[17966/99]
Tony Gregory
Question:
398
Mr. Gregory
asked the
Minister for Finance
his views on the Jubilee 2000 petition for debt cancellation; and if he raised this issue at the recent IMF and World Bank meetings.
[17968/99]
I propose to take Questions Nos. 375, 381, 396 and 398 together.
I am aware of the major problems faced by the most heavily indebted poor countries and of the extent to which their indebtedness has inhibited their growth and the development of their social sectors.
I am also aware that, important as it is, debt relief is one element in the overall strategy required to help these countries break out of their current condition. Irrespective of the degree of debt relief, donor countries must be prevailed on to continue to provide assistance and the multilateral agencies will need to co-ordinate with donors, governments and wider civic society in ensuring that development strategies are geared toward social development and poverty reduction as well as economic growth.
As far as the debt is concerned, Deputies will be aware of the Heavily Indebted Poor Countries Debt Initiative – HIPC – in which the lead is being taken by the World Bank and International Monetary Fund. The aim of this initiative is to give the HIPC countries the possibility to exit from the burden of their current unpayable debt. Ireland has been a consistent supporter of this initiative, and the passage of the Bretton Woods (Amendment) Act earlier this year provided for a contribution by Ireland of £15 million to the World Bank and IMF's HIPC trust funds.
Deputies will also be aware of the criticisms levelled at the HIPC Initiative by those who believe that it offers too little relief, to too few countries and with excessively restrictive conditions.
I share some of these reservations, and the Irish Government has been to the fore in urging the deepening and widening of HIPC, and for the alteration of its provisions so that greater debt relief is made available much more rapidly to the most heavily indebted poor countries. Ireland is also in favour of taking human development indicators into account in establishing eligibility for relief.
Following the recent review of the HIPC Initiative by the World Bank – to which my Department made submissions – the terms of the initiative are to be considerably enhanced.
While it still falls short of what we would like, I think it is important, at this stage, to ensure it is adequately financed so that it can be implemented.
At the annual meetings of the IMF and World Bank, I shall be urging further extension of the terms of the initiative, as well as increased attention to the connection between the debt relief process and poverty alleviation.
My principal concern, at this point, however, will be to urge the contributor nations – and the Bank and Fund themselves – to take the necessary steps to ensure that the enhanced HIPC Initiative receives the funding necessary to allow the promised level of debt relief to be realised.
