Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with his counterparts in G7 countries on (a) strengthening and (b) extending the eligibility criteria for the Common Framework to assist debt restructuring for (i) Tonga, (ii) small island developing states and (iii) other climate vulnerable countries.

Progress in implementing the Common Framework has been a regular feature in the Chancellor’s discussions in the G7 and G20. Recognising the need to advance existing requests for the Common Framework, in its October 2021 communique the G20 committed to step up its efforts to implement it in a timely, orderly and coordinated manner.

73 of the world’s poorest countries, including Tonga and a number of other small island states and climate vulnerable countries, are currently eligible for the G20 and Paris Club’s Common Framework. The UK is open to options to strengthen and extend the Common Framework noting that any decisions would require agreement of the full G20.

Countries that are ineligible for the Common Framework may still apply for a debt treatment from the Paris Club. The UK is a longstanding member of the Paris Club and has a strong record of working with international partners to assist countries on their road to longer-term debt sustainability.