HISTORIC PRESS RELEASE : Delivering the Mauritius Mandate [October 1998]

The press release issued by HM Treasury on 1 October 1998.

In Ottawa today Chancellor Gordon Brown unveiled a comprehensive strategy to assist in the poorest and most vulnerable countries’ efforts to reduce poverty.

The international community has made the halving of world poverty levels an overarching objective for the new millennium.  For those countries burdened by debt and the legacy of conflict, we need a comprehensive approach to support them in achieving this goal.  This approach should involve:

• Decisions by Spring 1999 on a framework for helping post conflict countries, which will provide early financial and technical assistance; advance debt relief; and deal with arrears;
• A wide-ranging review of the HIPC Initiative in mid 1999.  Such a review will help to ensure that the HIPC Initiative really does provide a lasting and final exit from the burden of unsustainable debt;
• Ensuring that 22 countries have reached their decision points under HIPC by the end of 1999; and
• Making further progress on an international commitment to ensure that export credits will only support productive expenditure.

The UK is committed to achieving these objectives.  We will press forward with this agenda at the Annual Meetings.  The UK is prepared to support these policies by;

• Contributing to any IDA managed trust fund for post conflict countries;
• Clare Short, Secretary of State for International Development, will announce tomorrow a substantial additional contribution to the HIPC trust fund to help the African Development Bank meet its share of HIPC costs;
• A willingness to contribute to international efforts to fill any financing gaps that remain to secure debt sustainabillity  for HIPCs that require more than 80% relief from the Paris Club;
• A further contribution to funding for technical assistance in debt management, to support faster resolution of debt reconciliation, and support the principle of a stronger debtor voice; and
• A UK commitment to allowing export credits for HIPCs only for productive expenditure.

The Chancellor said:

“The priority now is to deliver the Mauritius Mandate.  It would be a tragedy if the turmoil in emerging markets led the world to lose sight of the plight of some of poorest indebted countries.”