Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the impact of changes in bond yields for lower income countries’ debt and for actions on global debt relief.

The impact of changes in bond yields for lower income countries’ debt will depend on the terms of that debt, and any new debt taken on, by those countries. Many lower income countries do not currently borrow from bond markets, external borrowing instead being a mix of commercial, bilateral official and multilateral development banks (MDBs) and the IMF lending, some of which is on concessional terms i.e. at subsidised interest rates. Those with the highest risk of debt distress receive grants from the MDBs. The Government will continue to work with its international partners in the Paris Club and the G20 to urgently address debt vulnerabilities in low-income countries.