Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 335: To ask the Minister for Foreign Affairs when he will update Ireland's policy on international debt, with particular attention to the issue of debt cancellation or illegitimate debts; and if he will make a statement on the matter. [38136/08]

Peter Power (Limerick East, Fianna Fail)
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Ireland has played an important role internationally on the issue of alleviation of the debt burden on developing countries. The Government's policy strategy was prepared jointly by the Department of Foreign Affairs and the Department of Finance, and was launched in 2002. It supports the total cancellation of the debts of the world's poorest countries. It is intended that a review of the strategy will be undertaken jointly by the two Departments in 2009.

Ireland's bilateral assistance to the developing world has always been exclusively in the form of grants rather than loans. The Government has also provided very significant resources for initiatives to ease or cancel the debt burden. There are two main international instruments which address the problem of the debt burden, the Multilateral Debt Relief Initiative (MDRI) and the Heavily Indebted Poor Countries (HIPC) initiative. The MDRI came into effect on 1 July 2006, and provides for cancellation of eligible debt from the World Bank, the African Development bank and the International Monetary Fund for many of the world's poorest and most indebted countries. Ireland's share of the total cost of debt relief provided by the World Bank under MDRI is €58.64 million. The Government contributed this amount in full in 2006. Ireland has also contributed over €20 million to the HIPC initiative, which is implemented by the World Bank and the IMF, with the objective of reducing the debt burden of qualifying countries to sustainable levels.

We regard it as important to ensure that these international efforts are not undermined by further irresponsible lending or borrowing. The Government supports the development of an international consensus on responsible lending and borrowing procedures and I welcome the dialogue which the World Bank has opened with civil society groups on the complex issues involved.