I propose to take Questions Nos. 182, 183 and 185 together.
In my speech to the Joint Annual Discussion at the IMF and World Bank annual meeting, last week, I stressed that debt relief is a vital element in a more broadly based development strategy aimed at growth and poverty alleviation. Following is an extract of my contribution to the meeting on this subject. The full text of my statement is available under the annual meetings section of the IMF website (www.imf.org)
The HIPC initiative, driven by the World Bank and the IMF, is the official response to the need for debt relief, particularly at the multilateral level, but also involving substantial, if not complete relief, in respect of official bilateral debt. The initiative is clearly at a crucial stage in its development both in relation to its general implementation and its financing.
As originally conceived, the initiative aimed at both (i) freeing the most heavily indebted poorest countries from the burden of the unpayable element of their debt, and (ii) offering them a definitive exit from the debt treadmill which is seriously undermining their development.
Following the recent review of the initiative, it has been substantially enhanced – the amount of debt relief on offer has been doubled, a wider range of countries is to get faster and deeper relief – and my concern now is that these improvements are fully financed.
I would remind the Deputy that Ireland was to the fore in calling for such improvements, in particular via the submissions made by my Department and the Department of Foreign Affairs to the Review of HIPC, which preceded them.
We are all aware of the wide public concern for a serious attack on the problem of unbearable debt which is reflected in the extent of popular support for Jubilee 2000. This must be addressed and the HIPC initiative must be implemented in a way that achieves its basic aims, as set out above.
At the same time, the World Bank, the IMF, and individual members and creditors, must remain open to any further enhancements required for effective debt alleviation, in particular taking greater account of human needs in determining eligibility and the extent of the relief required.