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Dáil Éireann díospóireacht -
Tuesday, 30 Mar 1999

Vol. 502 No. 6

Written Answers. - Third World Debt.

Bernard J. Durkan

Ceist:

44 Mr. Durkan asked the Minister for Foreign Affairs the initiatives, if any, he has taken to alleviate the burden of debt repayments in the developing countries; and if he will make a statement on the matter. [8982/99]

Olivia Mitchell

Ceist:

46 Ms O. Mitchell asked the Minister for Foreign Affairs if he will make a statement on the campaign to reduce Third World debt. [8861/99]

Seán Ryan

Ceist:

56 Mr. S. Ryan asked the Minister for Foreign Affairs the Government's view of the cancellation of Third World debt as an appropriate way to facilitate recovery in developing countries and to mark the millennium, as suggested by the Jubilee 2000 campaign; and if he will make a statement on the matter. [8940/99]

Bernard J. Durkan

Ceist:

97 Mr. Durkan asked the Minister for Foreign Affairs the Irish position in respect of debt repayment by developing countries; if he has taken into account the views of non-Governmental organisations in relation to this issue; and if he will make a statement on the matter. [9176/99]

Bernard J. Durkan

Ceist:

98 Mr. Durkan asked the Minister for Foreign Affairs the degree of indebtedness in respect of developing countries currently and ten years ago; and if he will make a statement on the matter. [9177/99]

I propose to take Questions Nos. 44, 46, 56, 97 and 98 together.

Ireland views the burden of indebtedness borne by many developing countries as an enormous constraint on their economic and social development and as one of the greatest challenges facing the international community.
The Government has consistently used the relevant international fora to advocate the need for a comprehensive resolution to the debt problem of the developing countries, and in particular of the poorest and most heavily indebted countries, in the interests of their economic and social development.
In a new initiative announced last September, the Minister for Finance and I launched a major package of assistance to alleviate debt and assist the process of economic and social reform in the most heavily indebted poor countries in the world. This package will comprise a total of £31.5 million, of which £9.5 million has already been committed to debt relief in two of Irish aid priority countries, Mozambique and Tanzania. An additional £15 million will be provided for multilateral debt relief under the joint World Bank/IMF Heavily Indebted Poor Country (HIPC) Initiative, while the remaining £7 million will be provided to the Enhanced Structural Adjustment Facility (ESAF) of the International Monetary Fund. The Bretton Woods Agreements (Amendment) Bill 1998, which will give effect to those payments, passed all Stages in the Seanad on 26 March 1999.
This initiative, which represents a very substantial contribution towards alleviating the burden of indebtedness in developing countries, will enable Ireland to continue to play a strong and vigorous role in international action to tackle the debt problem.
The Government, in agreeing the debt relief package, also adopted a set of fundamental principles which will inform our future national policy on debt. These principles take account of the representations which the Minister for Finance and I received from non-governmental organisations in relation to this issue.
As regards debt cancellation, I appreciate and respect the views of Jubilee 2000, while also noting that few governments, from developed or developing countries, have adopted the position of calling for total debt cancellation. In respect of general bilateral and multilateral debt, the position taken to date by most developing countries is to generally favour reducing the debt burden of the most heavily indebted poor countries to a sustainable level, which would allow them to foster a process of economic growth and development. As regards Ireland's position, we will strongly encourage the international community, including bilateral donors, to take a generous and flexible approach to debt alleviation and to the situation of the heavily indebted poor countries and will continue to press for deeper debt relief so as to ease the debt burden on developing countries.
I warmly welcome the initiatives by Germany and the US to have the G7 consider at their Col ogne summit next June further measures to strengthen international debt alleviation efforts, especially with regard to the joint World Bank-IMF HIPC Initiative. In the context of the first review of the implementation of the HIPC Initiative, which is currently getting under way, Ireland is calling for a broadening, deepening and accelerating of the application of the initiative.
The World Bank produces an annual analysis and summary of global development finance which provides comprehensive information on all forms of debt; bilateral, multilateral and commercial. I have arranged to place a copy of the most recent edition of this publication, "Global Development Finance 1998", in the Dáil Library for the benefit of all Deputies.
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