Debts: Developing Countries

(asked on 21st November 2023) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will take steps to require private creditors to participate in initiatives to ease the debt burden on low-income countries.


Answered by
Bim Afolami Portrait
Bim Afolami
Economic Secretary (HM Treasury)
This question was answered on 28th November 2023

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.

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