Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor for the Exchequer, what assessment he has made of the adequacy of progress on sovereign debt restructuring processes for low and middle-income states at the Global Sovereign Debt Roundtable on 12 April 2023; and what his priorities are for the next Global Sovereign Debt Roundtable.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The focus of discussion at the last Global Sovereign Debt Roundtable (GSDR) was around the actions that can be taken now to accelerate debt restructuring processes and make them more efficient. I fully endorse the agreement reached to: (1) improve information sharing at early stages of restructurings; and (2) discuss further the assessment and enforcement of comparability of treatment during restructurings. These deliverables will support the swift implementation of the Common Framework and other debt treatments that involve a diverse range of creditors, which is a priority for the UK at the G20 and other fora where debt is discussed, including the GSDR.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with the Secretary of State for Foreign, Commonwealth and Development Affairs, on reallocating more of the UK’s SDRs for development objectives.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Chancellor of the Exchequer and the Secretary of State for Foreign, Commonwealth and Development Affairs work together closely on foreign policy and development finance objectives.
On SDR channelling specifically, I refer the Hon. Member to the answer given on 6 March to Question 153706 to the Hon. Member for Birmingham, Hodge Hill (Mr. Byrne).
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the proportion of Ghana's sovereign debt payments that are eligible for the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative and are due to be made to (a) private creditors and (b) private creditors governed by English law.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
According to Ghana’s latest joint World Bank/IMF Debt Sustainability Analysis, commercial creditors held 24.7% of GDP of Ghana’s public debt stock at end-2020. As most private debt takes the form of tradable instruments, the amount of international debt held by private creditors governed by English law can fluctuate on a regular basis. While Ghana has made an application to the Common Framework, the scope and terms of its debt treatment are yet to be agreed by creditors.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has taken steps to provide assurances to the government of Ghana on UK support for a rapid and fair conclusion to any sovereign debt restructuring process for that country through the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The UK welcomes Ghana’s request for a debt treatment under the G20 Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative. We stand ready to deliver a debt treatment for Ghana under the Common Framework in a timely and efficient manner. Our support has been conveyed to the government of Ghana through the UK’s representation at the Paris Club.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) financial value of assets linked to Teodoro Obiang Mangue that have been frozen in the UK since his Department’s announcement of sanctions against that individual and (b) the number of (i) fines imposed for breaches and (ii) other enforcement actions taken in relation to that asset freeze.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, undertakes an annual review of frozen assets in the UK, requiring all persons or institutions that hold or control frozen assets in the UK to report to OFSI. Details of assets reported to OFSI in 2021 are not yet available and will be published in OFSI’s 2021-2022 Annual Review later this autumn. This figure will be provided on an aggregate basis so as not to disclose the value of funds held by particular individuals, consistent with data protection obligations.
OFSI’s website holds details of all monetary penalties it has imposed. OFSI does not comment further on enforcement activity so as not to compromise its operational effectiveness. The relevant page can be found here: https://www.gov.uk/government/collections/enforcement-of-financial-sanctions
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent diplomatic steps he has taken to influence the implementation of the G20 Common Framework for Debt Treatments to improve (a) timeliness of processes, (b) engagement with debt-distressed countries at earlier stages, (c) transparent estimates by the International Financial Institutions of debt relief requirements for each eligible country, and (d) participation by private creditors.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In November 2020, the UK, along with the G20 and Paris Club, agreed the Common Framework for Debt Treatments beyond the DSSI with the aim of delivering a long-term, sustainable approach to dealing with debt vulnerabilities.
The Common Framework considers debt treatments on a case-by-case basis, driven by requests from eligible debtor countries. In its February 2022 communique, the G20 reiterated its commitment to step up efforts to implement the Common Framework in a timely, orderly and coordinated manner. The UK plays an active role in these discussions through the G7, G20 and the Paris Club. Our priority is to work with our G20 partners to ensure swift progress and effective implementation of debt treatments under the Framework.
The G20 has also been explicit that under the Common Framework private sector creditors will also be expected to implement debt treatments on comparable terms to those agreed by official creditors like the UK. We are focussed on ensuring that the private sector fully plays its part in any debt treatments under the Framework.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to engage with the German G7 Presidency on agreeing a common approach to (a) debt relief and (b) debt sustainability for debt-distressed developing countries.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In November 2020, the UK, along with the G20 and Paris Club, agreed the Common Framework for Debt Treatments beyond the DSSI with the aim of delivering a long-term, sustainable approach to dealing with debt vulnerabilities.
For countries that make a request to the Common Framework, treatments can include both the reprofiling of debt or a full restructuring, which, depending on need, may entail debt cancellation. This should enable more efficient, equitable, and effective case-by-case restructurings, allowing low-income countries requesting debt treatment to benefit from a transparent and responsive approach.
Progress in implementing the Common Framework has been a regular feature in the Chancellor’s discussions in the G7 and G20. In its February 2022 communique, the G20 reiterated its commitment to step up efforts to implement the Common Framework in a timely, orderly and coordinated manner. The UK is highly supportive of this goal and will continue to support efforts to achieve this.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) aggregate and (b) per country impacts on debt service costs to the Debt Service Suspension Initiative countries of (i) the planned end of the Debt Service Suspension Initiative in 2022, (ii) the exhaustion of the August 2021 Special Drawing Rights allocation to these countries and (iii) expected increases in global interest rates in 2022.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Debt Service Suspension Initiative (DSSI) was designed as a short-term initiative to tackle the immediate financing needs of eligible countries. Preliminary estimates suggest that the DSSI has suspended over $12.9 billion in debt service repayments. Recognising that many countries still face debt vulnerabilities at the end of the DSSI the UK, along with the G20, also agreed a new Common Framework for Debt Treatments beyond the DSSI, designed to provide more efficient, equitable and effective debt treatments. The UK is fully committed to implementing the Common Framework in coordination with our international partners.
The UK was a strong proponent of the unprecedented general allocation of $650bn in Special Drawing Rights (SDR) which provided a much-needed liquidity boost to vulnerable countries. SDRs will either be held by countries as reserve buffers or converted into hard currency to support budgetary spending. We welcome the forthcoming IMF report that will review and enhance transparency on the use of SDRs.
As interest rates rise through the year and global financial conditions tighten, the most vulnerable countries (including many DSSI countries) are likely to find it more challenging to meet debt repayments and finance ongoing operations. DSSI-eligible countries that face unsustainable debt burdens should seek debt treatment under the G20’s Common Framework.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Request for direction on independent sector contracting from NHS England Chief Executive Officer to Secretary of State for Health and Social Care, published on 12 January 2022, what discussions he has had with Ministerial colleagues in the Department for Health and Social Care in relation to the value for public money of the payments made to the independent health sector referred to in that letter.
Answered by Simon Clarke
The government is fully committed to supporting the NHS to respond to the Omicron variant.
As Chief Secretary to the Treasury, I regularly meet with Ministerial colleagues in the Department for Health and Social Care to discuss a wide range of issues, including spending within the NHS. HM Treasury works to ensure that taxpayer money is spent responsibly and delivers value for money for them.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the risks to children and their families of (a) cryptocurrencies and (b) cryptocurrency trading platforms using imagery, sounds and gamification techniques designed to appeal to children in their marketing.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government takes the issue seriously, and the Government and the financial regulators are acting to address risks relating to unsuitable marketing.
Last year the Government consulted on a proposal to bring certain cryptoassets into financial promotions regulation. This would ensure that relevant cryptoasset promotions are held to the same high standards for fairness, clarity and accuracy that exist in the financial services industry.
To further protect consumers, the FCA has banned the sale of cryptoasset derivatives to retail consumers, and has issued warnings highlighting that consumers who invest in cryptoassets should be prepared to lose their money. Earlier this year the FCA also launched a new InvestSmart campaign to help new investors understand the risks they may face.
More broadly, financial education was made statutory for 11 to 16-year olds within the national curriculum for citizenship in England in 2014, to ensure that children growing up gain the essential skills in managing money.
The Department for Education and HM Treasury work closely with the Money and Pensions Service on supporting on financial education for children and young people and to meet the goal of the UK Strategy for Financial Wellbeing for 2 million more children to have meaningful financial education by 2030. The Money and Pensions Service recently released guidance for schools in England which can be found on their website.