Asian countries to benefit from debt relief

The Government is to push for the deferment of debts in those countries worst affected by the Boxing Day tsunami in the Indian Ocean.

The UK, which currently holds the presidency of the G7, will use this influence to promote a long-term strategy to help alleviate the debt burden in Asian countries.

Chancellor Gordon Brown said today: "Our proposal is that, with immediate effect, the Paris Club should expect no debt repayment from afflicted countries. That would then lead to an analysis of the needs of these countries, with the possibility of some debt relief, at the same time ensuring that the money goes to the people and areas in greatest need. Britain has put this on the agenda for the G7 Finance Ministers meeting at the beginning of February.

"That will be backed up by two other proposals: the International Monetary Fund will offer emergency assistance; and the World Bank, which has made an initial contribution for emergency relief, will add to that substantially with money for reconstruction".

The package will see the $2 billion in aid and reconstruction pledges already made rise further and Mr Brown said that Britain was going to "play its part in making its contribution".

But the announcment was tempered by MPs who alleged today that Britain had done "too little, too late" and that the public had been faster than government with its aid response.

Meanwhile the UK aid airlift continues with the latest batch of supplies to be dispatched to the Maldives. A further 45 tonnes of supplies, including bottled water donated by Scottish Water and Strathmore Water, and collapsible jerry cans are on their way to the Maldives.

Mr Benn urged the public to support the appeal by Britain's aid agencies under the umbrella of The Disasters Emergency Committee (DEC) online at various charity websites or by calling 0870 6060 900.

Money pledged to the DEC agencies and by the UK Government on behalf of British taxpayers exceeds £110 million and is being put to work in the affected countries.

The Government has dispatched naval logistics ships to the area to help with the relief effort. A cargo aircraft has been sent to Sri Lanka with tents and sheets of plastic covering, and the purchase of 20,000 tarpaulins, 4,500 cooking sets, 40,000 sleeping mats and 5,000 water cans was announced.

The UK government is also working with the World Health Organisation to airlift medical supplies to Indonesia to help meet the need for medical support.

(SP)