Dáil Éireann Debate, Tuesday - 3 November 2009
764 Deputy Paul Connaughton asked the Minister for Foreign Affairs his plans to introduce a new Irish debt policy in so far as the funding arrangements in the third world countries are concerned; if the European Union has any proposals to initiate a similar policy; and if he will make a statement on the matter. [38490/09]
Amharc ar fhreagra773 Deputy Charles Flanagan asked the Minister for Foreign Affairs if, in the review of debt policy here, he has received representations from an organisation (details supplied); and if he will make a statement on the matter. [39001/09]
Amharc ar fhreagraI propose to take Questions Nos. 764 and 773 together.
Ireland has played an important role internationally on the issue of alleviation of the debt burden on developing countries. The Government's policy strategy, which was prepared jointly by the Department of Foreign Affairs and the Department of Finance, was published in 2002. It supports the total cancellation of the debts of the world's poorest countries. A review of the strategy is now being undertaken by the two Departments and I expect it will be completed within the coming months.
Ireland's bilateral assistance to the developing world is strongly focused on the poorest countries in sub-Saharan Africa, and has always been exclusively in the form of grants rather than loans. The Government has also provided significant resources for initiatives to ease or cancel the debt burden on developing countries. The two main international instruments which have been established to address the issue are the Multilateral Debt Relief Initiative (MDRI) and the Heavily Indebted Poor Countries (HIPC) initiative. The MDRI came into effect on 1 July 2006, and provides for cancellation of eligible debt from the World Bank, the African Development bank and the International Monetary Fund for many of the world's poorest and most indebted countries. To date, 25 countries have benefited from debt relief under the MDRI. Ireland's share of the total cost of debt relief provided by the World Bank under the initiative is €58.64 million. The Government contributed this amount in full in 2006.
Ireland has also contributed over €20 million to the HIPC initiative, which is implemented by the World Bank and the IMF, with the objective of reducing the debt burden of qualifying countries to sustainable levels. Overall, some $70 billion in debt service relief has been approved under the HIPC initiative for 33 countries, 27 of which are in Africa.
The Department of Foreign Affairs is working closely with the Department of Finance on the details of an updated debt policy strategy, taking account of developments since 2002, and of the views of interested parties. These include the organisation referred to by the Deputy, which has made a detailed submission to both Departments.
The issue of the debt burden is considered regularly at EU level. The most recent meeting of EU Development Ministers at the General Affairs and External Relations Council, which I attended in Brussels on 18 May, focused on EU support for developing countries in coping with the international economic crisis. The Council underlined that heavily indebted countries eligible for debt relief will not be able to experience the full benefits unless all creditors contribute their fair share and become involved in the international debt resolution mechanisms. The EU is strongly committed to finding solutions to unsustainable debt burdens. Working with our partners, Ireland will ensure that the EU continues to address the issue of debt effectively in its development policies and programmes.
