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Debts: Developing Countries

Volume 488: debated on Tuesday 24 February 2009

To ask the Chancellor of the Exchequer how much (a) low income and (b) lower-middle income countries owe the UK. (253422)

The UK is owed a total of £349 million by low-income countries and £1,254 million by lower-middle income countries, using the World Bank's classification of low and lower-middle income countries1.

The UK has cancelled or is due to cancel 100 per cent. of bilateral sovereign claims on all Heavily Indebted Poor Countries (HIPCs) at Completion Point under the HIPC Initiative. To date, 24 out of 41 HIPCs have reached Completion Point, with a further 10 having reached Decision Point. The UK also provides 100 per cent. cancellation of debt service payments between Decision Point and Completion Point and holds in trust any payments received from HIPCs before they become eligible for debt relief.

1 The World Bank's classifications are based on gross national income per capita in 2007.