(2) how much debt relief and cancellation in terms of (a) flow relief and (b) stock cancellation has been granted by the Government since 2004 on debts of (i) low and (ii) lower middle income countries owed to (A) the CDC group and (B) his Department, broken down by country.
The following table shows the debts currently owed by Low Income and Lower Middle Income Countries to the UK through DFID, as well as debt relief and cancellation in terms of flow relief and stock cancellation for these countries. No debt is owed directly by any government to CDC Group plc, which only lends to commercial organisations. However, some loans by CDC to parastatal and quasi-governmental organisations were guaranteed by their governments. Income to CDC and debt relief on these loans are therefore included in the table.
Debts owed by countries to the World Bank on loans financed by the UK and other then-EEC donors in the 1970s are listed separately. DFID receives payments on these loans from the World Bank. The loans reverted to bilateral status in 2005 and those to Heavily Indebted Poor Countries (HIPCs) are being treated in accordance with the UK’s 100 per cent. debt relief policies. All payments by HIPCs to the UK since 2000 on these loans will be returned to them when they complete the HIPC Initiative. The balance of the loans will also be cancelled. Payments returned to HIPCs so far are listed as flow relief since 2004, with loans cancelled recorded as stock cancellation. DFID is in the process of returning payments and cancelling our share of these loans to Malawi and Sierra Leone, which recently completed the HIPC Initiative. We are also in the process of returning payments received from Mauritania.
£000 Debt owed Debt relief World Bank Loans with DFID as a creditor Flow relief 2003-04 to 2005-06 Stock cancellation 2003-04 to 2005-06 Reimbursements since 2004 on World Bank loans with DFID as a creditor Stock cancellation since 2004 on World Bank loans with DFID as a creditor Country CDC 3DFID CDC 3DFID CDC 3DFID Low Income Countries1 Bangladesh — — 4,701 — — — — — — Benin1 — — — — — — — 64 304 Burkina Faso1 — — — — — — — 168 813 Burundi2 — — 121 — — — — — — Cameroon1 — — — 2,574 — — — — — Central Africa N. Rep.2 — — 49 — — — — — — Comoros2 — — 71 — — — — — — Congo, Dem. Rep.2 — — 1,568 — — — — — — Congo, Rep.2 — — 489 — — — — — — Cote D’Ivoire2 12,976 1567 — — — — 663 — — Ethiopia1 — — — — — — — 204 1,062 Gambia2 — — 167 — — — — — — Ghana1 — — — 4506 1,632 9,050 1,104 121 630 Guinea2 — — 381 — — — — — — Guinea-Bissau2 — — 96 — — — — — — Haiti2 — — 592 — — — — — — India — — 4,913 — — — — — — Kenya 292 — 1,450 — — — — — — Laos — — 274 — — — — — — Lesotho — — 217 — — — — — — Liberia2 — — 134 — — — — — — Madagascar1 — — — — — — — 203 1,057 Malawi1 — — — 2,886 — — — — 754 Mali1 — — — — — — — 211 1,019 Mauritania1 — — — — — — — — 152 Mozambique1 — — — — — — 68 — — Myanmar — — 1,062 — — — — — — Nepal2 — — 1,105 — — — — — — Nicaragua1 — — — — — — 3 — — Niger1 — — — — — — — 38 205 Nigeria — — — — — — 5,000 — — Pakistan — — 5,672 — — 23,139 — — — Rwanda1 — — — — — — — 34 175 Senegal1 — — — — — — 49 87 413 Sierra Leone2 — — 293 — — — — — — Somalia2 — — 151 — — — — — — Sudan2 — — 1,093 — — — — — — Tanzania1 — — — — — — — 524 2,302 Togo2 — — 665 — — — — — — Uganda1 — — — — — — — 455 2017 Yemen — — 1,102 — — — — — — Zambia1 — — — — 1,154 — 2,154 99 526 Zimbabwe 10,144 8,544 — — — — — — — Total for low income countries 23,412 9,111 26,276 9,966 2,786 32,189 4,041 2,208 11,429 Lower middle income countries Colombia — 6 Ecuador — 8,067 Egypt — 3112 3,542 — — — 1,218 — — Guyana1 — — — — — — 12,106 59 306 Honduras1 — — — 2,519 186 15,371 93 — — Indonesia 16,622 — 553 — — — — — — Jamaica 5,906 313,472 — — — 5,864 9,257 — — Jordon — 37,072 — — — — 5,716 — — Peru — 32,958 — — — — 1,550 — — Philippines — 483 — — — — — — — Samoa — — 29 — — — — — — Solomon Islands — — — — — — 734 — — Sri Lanka — — 873 — — — — — — Total for Lower Middle Income countries 22,528 32,170 4,997 2,519 186 21,235 30,674 59 306 1 Countries completed the HIPC Initiative and received 100 per cent. debt cancellation from the UK. 2 Countries progressing through HIPC and will receive 100 per cent. debt cancellation when they reach HIPC Completion Point. Those that have passed Decision Point of the HIPC Initiative receive 100 per cent. flow relief (they make no debt service payments). 3 Debt relief has been given on these debts under Retrospective Term Adjustment (RTA) and the Commonwealth Development Initiative (GDI)-payments are cancelled each year as they become due and the countries are not billed.
No debt is owed directly by any government to CDC Group plc, which only lends to commercial organisations. Some loans by CDC to parastatal and quasi-governmental organisations were guaranteed by their governments, and income to CDC from these loans is recorded in the table. The only income received directly by DFID from a Low Income Country (LIC) in 2005-06 came from Zimbabwe, which has not met the standards of accountability, public financial management and commitment to poverty reduction needed to qualify for debt relief from the UK. No payments are expected from LICs in 2006-07.
Income to the Government from debts owed to DFID and CDC in 2005-06 and expected in 2006-07 is as follows:
Received in 2005-06 Expected in 2006-07 DFID CDC DFID CDC Low Income Countries 89 28 0 30 Lower Middle Income Countries 3,298 191 1,117 1,985
In addition, £1.852 million was received by DFID in 2005-06, and £1.883 million is expected in 2006-07 from repayments by countries to the World Bank on loans that were originally funded by the UK and other then EEC creditors in the 1970s. The bulk of these loans were to Low Income Countries. Debts held by Heavily Indebted Poor Countries (HIPCs) are cancelled in full when they reach HIPC Completion Point, with any payments made to the UK since 2000 returned to them. The UK is not currently able to provide debt relief on our share of the loans to non-HIPC Low Income Countries as this requires the agreement of all eight creditors. We are continuing discussions and hope to be able to offer debt relief on these loans soon.