PARLIAMENTARY EARLY DAY MOTION
REDUCTION OF DEBT FOR THIRD WORLD COUNTRIES (29 November 1995)

That this House urges Her Majesty's Government to recommend the IMF and the World Bank to consider amending their charters and policies so that a measure of staged debt forgiveness be made available to individual least developed countries which are fully implementing IMF and World Bank structural reform programmes and which have agreed to further self-imposed stringent conditions to ensure full transparency of government; believes that, in the spirit of the recent G7 discussions in Halifax, these conditions should include the acceptance of residential auditors approved by the IMF and the World Bank, to conduct a continued monitoring of those countries' economic performance under their duly approved national development plans; notes that Uganda, under the leadership of President Museveni, has met these criteria, and was the first heavily indebted country to have been offered expanded bilateral Trinidad Terms debt forgiveness up from 33 per cent. to 67 per cent. on the qualifying portion of its bi-lateral debt, in recognition of the fact that the debt was largely accumulated under previous Ugandan administrations and during the civil war and has demonstrated its commitment to good governance and on inflation and economic probity; further notes that President Museveni has agreed to invite external auditors to encourage the IMF and the World Bank to make necessary changes to their charters and policies; and notes that the Early Day Motion in session 1994-95, which was in similar terms, was supported by Debt Crisis Network; and urges Her Majesty's Government to consider the initiative now proposed to facilitate long term measures of debt forgiveness from the IMF and World Bank to countries like Uganda and to enable them to achieve self-sufficiency.

Sponsored by:
Sir William Cash (Conservative)