MEDIA RELEASE

Released By:
Downer

The Australian Government will provide $34.8 million over three years for
Australia's continuing share of multilateral debt relief under the Heavily
Indebted Poor Countries (HIPC) Initiative.

The HIPC Initiative provides debt relief to the world's poorest and most
heavily indebted countries which are pursuing sound adjustment and reform
programmes supported by the International Monetary Fund and the World
Bank. The HIPC debt relief package is in addition to other bilateral
aid.

Australia is also involved in other debt relief efforts through the Paris
Club. Australia has agreed with other countries to place a twelve-month
moratorium on debt repayments from Indonesia and Sri Lanka following the
tsunami, and forgive 80 per cent of the more than $1 billion
owed to Australia by Iraq.

Media inquiries:

Chris Kenny (Mr Downer's office) 0419 206 890

AusAID (Public Affairs) 0417 680 590