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Official Debt

Volume 81: debated on Monday 24 June 1985

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asked the Secretary of State for Foreign and Commonwealth Affairs what consideration has been given to writing off official debt due to the United Kingdom from Vietnam, Laos, Senegal and South Yemen.

We do not think it appropriate to write off official aid debts for Vietnam under the retrospective terms adjustment arrangements because of Vietnam's human rights record and because it is in default on past British aid loan repayments. South Yemen is also in default on past British aid loan repayments and no consideration is being given to the application of RTA. Laos did not have any outstanding loan repayments to the United Kingdom at the time RTA was introduced in 1978. The country has since begun to repay a small interest free loan but no consideration is currently being given to the application of RTA. We have no plan to write off aid debts in respect of Senegal. The country has a per caput income above the RTA threshold (currently $400 in 1983) and is not included in the list of least developed countries.