Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the impact on LICs of rising interest rates on foreign loans.

The recent IMF World Economic Outlook underlined the difficulties that tightening financial conditions pose for low-income countries. In this environment, it is essential that countries take on new debt responsibly and that lenders provide credit on terms that promote sustainability. The UK is a signatory to the OECD Sustainable Lending Principles, which help ensure this.

We monitor the risks posed by global interest rates and are fully committed to working with our international partners to help the most vulnerable countries address the challenges they face.

For example, it is a UK priority to ensure the swift implementation of the Common Framework, which was agreed to help deliver a long-term, sustainable approach for supporting low-income countries to tackle their debt vulnerabilities.