Outstanding Debt Ann McKechin To ask the Secretary of State for International Development (1) how much debt is owed by (a) low and (b) lower-middle-income country governments to the UK through (i) the CDC group and (ii) his Department, broken down by country; (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. Hilary Benn 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.| --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ann McKechin To ask the Secretary of State for International Development how much has been received by the Government from (a) low and (b) lower middle income countries on debts owed to (i) the CDC group and (ii) his Department in 2005-06; and how much is expected to be received in each category in 2006-07. Hilary Benn 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.