Aengus Ó Snodaigh
Question:477 Aengus Ó Snodaigh asked the Minister for Foreign Affairs if he will report on his latest efforts on debt cancellation and any planned additional efforts in view of the tsunami disaster. [1553/05]
View answerWednesday, 26 January 2005
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The Government adopted a policy on developing country debt in July 2002. The policy analysed the effectiveness of the World Bank-IMF enhanced heavily indebted poor countries, HIPC, initiative and called for reforms to the way in which the World Bank and the IMF assessed levels of debt sustainability. It stated the Government's support for debt cancellation under certain circumstances.
Since its launch, the Government has promoted the policy at the World Bank and the IMF and in discussions with other international aid donors. Ireland's concerns on developing country debt were conveyed directly to the president of the World Bank during his visit to Ireland in January 2003. The debt policy and a call for debt cancellation were also highlighted by the Taoiseach in his address to the bank in March 2003. During our Presidency of the EU in 2004, the Taoiseach and other members of the Government availed of every appropriate opportunity to highlight our concerns at the plight of the heavily indebted poor countries. Efforts at ministerial and official levels have continued since then. It is intended to intensify these efforts in the coming months.
Next week, the president of the World Bank, Mr. James Wolfensohn, will be in Dublin for a series of meetings to discuss a number of development-related issues including the heavily indebted poor country initiative. At the meetings with Government representatives, Ireland's advocacy of debt cancellation will be emphasised.
Ireland supports initiatives aimed at helping to ensure that the debt burdens of the countries affected by the tsunami do not become a serious impediment to their ability to address their immediate emergency and recovery needs. The Paris Club-G7 offer to suspend debt payments is aimed at addressing these immediate needs. Of course, it is for the individual affected country to consider the appropriateness of debt relief to their situation. It is important that funds for the tsunami related debt moratorium should be new and in addition to the funds for other debt relief initiatives.
In seeking to address the short-term debt problems caused by the tsunami, we must ensure that we do not do so at the expense of the other heavily indebted poor countries. Ireland has consistently called for 100% debt cancellation, under certain circumstances, for the heavily indebted poor countries.