Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of bringing forward legislative proposals to ensure that no creditor can sue for more than they would have got if they had taken part in (a) the Common Framework for debt restructuring and (b) any other internationally agreed debt restructuring the Government is party to.

The UK, alongside the G20 and Paris Club, expects creditors, including private creditors, to participate in debt restructurings on comparable terms. This is a fundamental principle of the G20 Common Framework.

At this stage, the Government is not pursuing a legislative approach that would force private or other lenders to participate in debt restructurings. The Government is focused on delivering a market-based (contractual) approach to private sector participation, including taking the lead in developing Majority Voting Provisions for private syndicated loans. These promote more efficient restructurings and reduce the ability for creditors to hold out.