Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Tuesday, 11 May 1999

Vol. 504 No. 4

Written Answers. - Foreign Debt.

Bernard J. Durkan

Ceist:

122 Mr. Durkan asked the Minister for Foreign Affairs the proposals, if any, he has to alleviate the burden of foreign debt in developing countries; and if he will make a statement on the matter. [12272/99]

Ireland is deeply concerned about the burden of foreign debt on many developing countries. The need to service such debt has diverted scarce resources away from areas of pressing need such as health and education in the countries which can least afford to make such sacrifices. This issue demands a coherent and far-reaching international response. I intend that Ireland should play the fullest possible part in this response.

Our concern about the effects of the debt crisis led the Government in September of last year to agree to a comprehensive debt relief package committing funds of over £31 million to ease the debt burden on the heavily indebted poor countries. This comprises £9.5 million committed to debt relief in two of the priority countries for Irish aid, Mozambique and Tanzania, and £22 million to be given to multilateral debt alleviation, mainly through the joint World Bank-IMF heavily indebted poor country – HIPC – initiative. The Government also adopted a number of principles to guide our future policy on the debt situation of developing countries, intended to make the debt issue central to our future aid strategy.

There has been a series of new initiatives on the issue of developing country debt in recent months, mainly from the G7 countries. This includes the Cologne initiative launched by the German Chancellor last January as well as proposals from the US, Canada, France and the UK. Collectively, these developments mark an important change in terms of international attitudes towards the problem of developing world indebtedness and specifically acknowledge that present debt alleviation measures, including the joint World Bank-IMF heavily indebted poor countries – HIPC – initiative, must be significantly strengthened.

The interim and development committees of the World Bank and IMF at their spring meeting in Washington at the end of April agreed on the importance of enabling HIPC relief to be broader, faster and deeper and reiterated the importance of ensuring a clear link between debt relief and the goals of sustainable development and poverty reduction. The annual meeting of the World Bank and IMF next September is likely to consider comprehensive new measures designed to address the debt relief needs of the heavily indebted poor countries in a shorter timeframe.

The principles adopted by the Government last September include a commitment to strongly encourage the international community to take a generous and flexible approach to debt alleviation. Ireland will continue to use every oppor tunity to press for deeper debt relief so as to ease the debt burden on developing countries.

Bernard J. Durkan

Ceist:

123 Mr. Durkan asked the Minister for Foreign Affairs the extent to which Ireland has responded to the requests from developing countries for a write off of foreign debt; and if he will make a statement on the matter. [12273/99]

The foreign debt of developing countries has become a major issue for the international community, including Ireland. There can be no doubt that excessive foreign debt has become a severe hindrance to the development of such countries.

Ireland is not a bilateral creditor of the developing countries. Our policy has always been, and will continue to be, to provide development assistance in the form of grants, rather than loans. While Ireland is, therefore, not in a position to lead by example on the issue of debt cancellation, we strongly welcome those measures – either cancellation or rescheduling of debt – which have occurred. We also recognise that these measures have not proved sufficient.

Our concern about the effects of the debt crisis led the Government in September of last year to agree to a comprehensive debt relief package committing funds of over £31 million to ease the debt burden on the heavily indebted poor countries. This comprises £9.5 million committed to debt relief in two of the priority countries for Irish aid, Mozambique and Tanzania, and £22 million to be given to multilateral debt alleviation, mainly through the joint World Bank-IMF heavily indebted poor country – HIPC – initiative. The Government also adopted a number of principles to guide our future policy on the debt situation of developing countries, intended to make the debt issue central to our future aid strategy.

While debt cancellation is extremely welcome where it proves possible, what is more generally needed are measures to substantially alleviate the debt situation facing many developing countries, by reducing debt to a sustainable level, which would allow them to foster a process of economic growth and development.

This is an issue on which a large measure of consensus has emerged in recent months. Several of the major creditor nations have launched new initiatives on debt relief, including the Cologne initiative launched by the German Chancellor last January as well as recent proposals from the US, Canada, France and the UK. Collectively, these developments mark an important change in terms of international attitudes towards the problem of developing world indebtedness and represent a recognition that present debt alleviation measures, including the joint World Bank-IMF heavily indebted poor countries – HIPC – initiative, must be significantly strengthened.

The interim and development committees of the World Bank and IMF at their spring meeting in Washington at the end of April agreed on the importance of enabling HIPC relief to be broader, faster and deeper and reiterated the importance of ensuring a clear link between debt relief and the goals of sustainable development and poverty reduction. The annual meeting of the World Bank and IMF next September is likely to consider comprehensive new measures designed to address the debt relief needs of the heavily indebted poor countries in a shorter timeframe.
The principles adopted by the Government in September include a commitment to strongly encourage the international community to take a generous and flexible approach to debt alleviation. Ireland will continue to use every opportunity to press for deeper debt relief so as to ease the debt burden on developing countries.
Barr
Roinn