Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of cancelling the debt of (a) Mozambique and (b) other countries in southern Africa that have been heavily impacted by tropical storm Ana.

We recognise the significant impact of Storm Ana on Mozambique. It is clear that other countries, including Malawi and Madagascar, have also been severely affected.

If affected countries are facing significant debt vulnerabilities, they can – if eligible – request a treatment under the Common Framework for Debt Treatments beyond the DSSI. This was agreed by the UK, along with the G20 and Paris Club, to help deliver a long-term, sustainable approach for supporting low-income countries to tackle their 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.

In addition to this, the UK is exploring the development of innovative debt instruments that could provide automatic fiscal space in the event of a significant weather event or other natural disaster, to help increase the long-term climate resilience of vulnerable countries. The UK is actively calling for creditors and debtors to explore the introduction of these climate-resilient debt instruments.