Low and Middle-income Countries: Debt Restructuring

Debate between Lord Cameron of Chipping Norton and Lord Kamall

Tuesday 12th March 2024 Lords Chamber

[Lord Cameron of Chipping Norton (Con)]

I absolutely agree with the noble Lord. We must keep this under review and keep looking at it, asking ourselves what more we can do. As we do so, we should be guided in part by the IMF, which has a definition of debt sustainability. Even on its definition, things look very bleak when you look at the number of countries in debt distress or at risk of going into debt distress. But more necessary than a new definition is making the collective action clauses and the majority voting provisions work.

[Lord Kamall (Con)]

My noble friend the Minister mentioned the Commonwealth. He will be aware of its public debt management programme, which supports member countries to effectively manage their debt portfolios. What conversations have my noble friend or colleagues in government had with Commonwealth colleagues about public management of the debts of Commonwealth members and non-members?

[Lord Cameron of Chipping Norton (Con)]

I thank the noble Lord for his question. There is an ongoing conversation with the Commonwealth. This is one of the many good advice services that it gives. This year, the year of CHOGM, we are also spending a particular amount of time talking with Commonwealth countries about how they can access finance, not loans in this case but green finance. A lot of finance has been made available, but many of the smaller countries find it hard to access, and we should help with that.