The world's poorest countries are to be relieved of hundreds of millions of pounds of debt under a major initiative announced by the British government last night.
Details of the scheme will be laid out by the Chancellor, Mr Gordon Brown, and the International Development Secretary, Ms Clare Short, at a seminar with aid agencies and church leaders at Number 11 Downing Street on Tuesday.
But last night a Treasury spokesman confirmed that following discussions with the World Bank, the International Monetary Fund and other major countries, the British government was now ready to forego 100 per cent of bilateral debts owed by those countries which qualify for the recently revised international Highly Indebted Poor Countries (HIPC) Initiative.
"Britain has long been in the forefront of the international movement to deliver debt relief for the world's poorest countries," the spokesman said.
Mr Brown and Ms Short will announce that by the end of January 2000, the first four countries should start to enjoy the new relief.
By August, that figure is expected to rise to 10 countries and the government's target is that by the end of the year the figure should be 25.
And they will confirm that, now they are satisfied that the revised HIPC programme means that debt relief will actually aid poverty reduction efforts, Britain can offer "100 per cent bilateral debt forgiveness" for all HIPC countries.
The plan will ensure that at least two-thirds of the world's 41 poorest nations will receive help with their debt burdens during the next 12 months.
In an interview for today's Guardian newspaper, Mr Brown said: "We have got to get the debt relief process moving.
"We are determined to use whatever energies we can to put pressure on the international community."
Last night, Third World debt campaigner and Live Aid organiser Sir Bob Geldof welcomed the government's initiative.
"It's an amazing thing to do, and frankly we will not be remembered for wheels and Domes and fireworks.
"I think future generations will remember a very simple and confident gesture like this," he told BBC 1's Nine O'Clock News.