Written answers

Thursday, 24 March 2005

Department of Foreign Affairs

Debt Relief

5:00 pm

Tony Gregory (Dublin Central, Independent)
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Question 101: To ask the Minister for Foreign Affairs the manner in which the objective of debt cancellation for third world countries will be progressed by him at the IMF-World Bank spring meeting in April 2005; his views on the way in which debt cancellation will be funded; if the use of IMF gold will be put forward by him; and if he will make a statement on the matter. [9843/05]

Photo of John PerryJohn Perry (Sligo-Leitrim, Fine Gael)
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Question 106: To ask the Minister for Foreign Affairs if his attention has been drawn to the fact that at a recent meeting in London the G7 finance ministers moved to support the 100% debt cancellation for the poorest countries of the world; if the Government will campaign for the sale of IMF gold to fund this cancellation; and if he will make a statement on the matter. [9938/05]

Photo of Conor LenihanConor Lenihan (Dublin South West, Fianna Fail)
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I propose to take Questions Nos. 101 and 106 together.

The Government's policy paper of July 2002 on developing country debt stated Ireland's support for 100% debt cancellation under certain circumstances and on the basis of additional resources from donors. It also concluded that, to mobilise the necessary funds for total debt cancellation, a greater number of donors, particularly the larger economies, would have to increase their official development assistance more rapidly. The Government has promoted its debt policy at the World Bank and the IMF and in discussions with other international aid donors and will continue to do so. Ireland's concerns on developing country debt were conveyed to the president of the World Bank during his visits to Ireland in 2003 and, most recently, in January 2005. The Taoiseach highlighted these concerns and called for debt cancellation when he addressed the bank in March 2003. He and other members of the Government availed of every opportunity to express these concerns while Ireland held the Presidency of the European Union in 2004.

While it is not the approach favoured in our debt policy, the idea of selling part of the International Monetary Fund gold reserves to fund debt cancellation is interesting and it has gained some support among the G7 countries. The managing director of the IMF, Rodrigo de Rato, has been asked to bring forward for the spring meetings of the IMF proposals on the funding of debt relief, among which is the sale or revaluation of the IMF gold reserves. All such proposals will be considered by the Minister for Finance in consultation with my Department.

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