Vol. 503 No. 3
315 Mr. Callely asked the Minister for Finance Ireland's contribution as a direct contribution to the heavily indebted poor countries initiative; the number of countries and estimated population identified as requiring assistance; the mechanisms in place to ensure this initiative is bringing real benefits across the social dimension; and if he will make a statement on the matter. [10263/99]
The Bretton Woods Amendment Act, 1999, which came into effect on 7 April 1999, includes provision for a contribution by Ireland to the joint IMF/World Bank Highly Indebted Poor Countries Debt Initiative of the World Bank.
Specifically, the Act authorises me to make the payments authorised by the Government under the debt relief package announced by myself and the Minister for Foreign Affairs on 16 September 1998. The package will amount to £31.5 million over 12 years of which £17 million will be disbursed in 1999. The package consists essentially of the following three elements: Debt relief of £11 million is being provided to the World Bank's HIPC Debt Initiative Trust Fund; £4 million to the IMF's (ESAF) HIPC Trust; and £7 million is being provided to the IMF to provide interest subsidies under the Enhanced Structural Adjustment Facility Trust.
The Deputy will be aware that a review of the HIPC debt initiative which is currently being conducted. In a recent statement by the president and managing director of the international development association (ie, the soft loan arm of the World Bank) on the HIPC initiative it was suggested that there should be tighter links between debt relief and poverty reduction and social policies in the countries affected. It was noted that there was widespread concern – shared by the executive board of the international development agency – about ensuring that the resources released through debt relief should contribute to strengthening programs to improve social and economic services for the poor.
