Written question asked by Sian C James (Labour) on Monday, 7 November 2005, in the House of Commons. It was due for an answer on Wednesday, 9 November 2005. It was answered by Hilary Benn (Labour) on Tuesday, 15 November 2005 on behalf of the Department for International Development.

Somalia

Question: To ask the Secretary of State for International Development what Somalia's outstanding debt is; how much international debt relief was given to Somalia following the G8 summit in July; and if he will make a statement.

Answer: The World Bank's latest estimate for Somalia's external debt is just under $3 billion, on which they have not been able to make repayments for many years.The G8 proposal discussed in July, will cancel 100 per cent. of the debts owed by heavily indebted poor countries (HIPCs) to the International Monetary Fund and the concessional funds of the World Bank and the African Development Bank. To qualify, countries must first complete the HIPC Initiative.In order to benefit from the exceptional debt relief given under the HIPC Initiative, Somalia would need to establish a minimum track record of macro-economic stability, demonstrate a commitment to poverty reduction by developing an interim Poverty Reduction Strategy Paper, and clear its arrears. The fundamental priority for the Transitional Federal Government of Somalia now is to establish political stability, with the support of the international community, and by doing so begin to shore up national and international credibility. Once political reconciliation is under way, donors will clearly need to focus on what support needs to be provided to help Somalia address its unsustainable debt and arrears. The UK will remain actively involved in helping to find solutions to Somalia's problems.

Secondary information