Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what comparative assessment she has made of (a) reforming the G20 Common Framework for debt relief and (b) a new UN-led system for debt relief.

Whilst the G20 Common Framework process has been slower than the government would like, we remain committed to making it a success and are actively working with our G20 partners to ensure that it can deliver more timely, efficient, orderly and coordinated restructurings.

The UK and likeminded partners have pushed for improvements to the Framework – including advocating for greater transparency and clearer timelines in restructuring processes through the Global Sovereign Debt Roundtable and the G20 and expanding eligibility to select middle-income countries. We welcome the agreement of the recent G20 Ministerial Declaration on Debt Sustainability under the South African Presidency, and we are working with partners to ensure its commitments are implemented.

The government welcomed the package to support debt sustainability in the outcome document agreed at the UN’s Seville Conference on Financing for Development in June, specifically the strong action to improve debtor voice, debt transparency, disaster pause clauses and strengthen the Common Framework. We will maintain momentum on reforms to the existing debt architecture, including making restructurings quicker and more efficient and engage with partners on any future discussions on debt at the UN.