“Ireland took a lead in advocating 100% debt relief for the Least Developed Countries (LDCs), becoming the first government of a developed country to do so.”
White Paper on Irish Aid

The Challenge

High levels of external debt and the consequent costs of debt service have become a growing burden on the exchequers of many developing countries, consuming revenue and limiting expenditure on essential basic services and infrastructure.  Such limitations on public expenditure disproportionately affect the poor, constrain economic growth and limit a country’s ability to manage its own development.

Ireland’s Response

Ireland has a strong record on the issue of debt relief for developing countries. Having always given our assistance as grants rather than loans, Ireland is not a bilateral creditor. We took a lead in advocating 100% debt relief for the Least Developed Countries (LDCs), becoming the first government of a developed country to do so. In 2006, Ireland committed €59 million for multilateral debt relief through the World Bank.

It is important to recognise that debt relief is not an end in itself. It is about mobilising additional resources to fund development. In the World Bank and in other international fora, we will seek to ensure that funding for debt relief is additional to resources already committed for development cooperation and that the relief provided results in more resources being made available in LDCs for poverty reduction activities.

Last updated: 08/02/07