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.

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.