NORTH EAST MEP CALLS FOR NEW APPROACH TO DEBT RELIEF (Fiona Hall MEP)

Fiona Hall MEP <info@fionahall.org.uk>

NORTH EAST MEP CALLS FOR NEW APPROACH TO DEBT RELIEF

January 12, 2005 12:00 AM

North East MEP Fiona Hall is calling for a new approach to debt relief for developing countries,

Speaking in a debate on debt-relief in the European Parliament, Ms Hall called on the EU and its national governments to commit to phasing out developing country debt as a key part of achieving the Millennium Development Goals. But she said a new approach was needed.

"The really crucial question is how much of the national budget is being used to repay debt. In many African countries debt repayments still take up a larger share than health services. In Ghana 11% is spent on debt relief, while only 9% goes into healthcare."

"If we want debt relief to contribute to achieving the Millennium Development Goals, then we need to acknowledge that debt is unsustainable wherever it prevents a country financing its poverty reduction programmes."

But Ms Hall also told MEPs that debt relief must be linked to good governance and sound administration.

"Nothing will be achieved if the money saved because of debt relief is spent by a corrupt dictator on expensive palaces, or even worse, on attack helicopters to terrorise a section of the population. The governments of developing countries have a responsibility to invest in their own people."

Commenting after the debate, Fiona Hall said:

"The tsunami crisis in Asia has reminded us that we all live on this planet together, regardless of nationality, race or religion. We must remember that lesson when we decide how best to help those countries that face crippling levels of debt."