Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the need for legislation to make holders of lower-income country sovereign debt governed by English law participate in debt restructurings, including those agreed through the G20 Common Framework.

To deliver a long-term, sustainable approach to dealing with debt vulnerabilities, the UK, along with the G20 and the Paris Club, has agreed a new Common Framework for Debt Treatments beyond the DSSI. Private sector participation on at least as favourable terms as bilateral creditors is a fundamental principle of the Common Framework. We are fully focussed on implementing the Common Framework for those who have requested it and ensuring that the private sector plays its part in any debt treatments under the Framework.

At this stage, the government is not pursuing a legislative approach that would force private creditors to participate in debt restructurings. Any legislative approach would need to address a number of challenges, such as ensuring legislation does not reduce access to and the cost of finance for low-income countries to meet wider development goals.