Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of rising levels of debt in low income countries; and what steps they are taking to help low income countries manage their foreign debt.

The UK recognises the significant debt vulnerabilities faced by many low-income countries, exacerbated by the Covid-19 pandemic. That is why support for low-income countries, including on debt, has been a key priority for the UK’s G7 Presidency this year and something we have worked closely on with our international partners in the G20.

To deal with immediate debt vulnerabilities, the UK, alongside our G20 and Paris Club partners, agreed the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative. This brings together, for the first time, G20 and Paris Club creditors to coordinate on debt treatments for 73 low-income countries. Under the Common Framework, private creditors will be required to implement debt treatments on at least as favourable terms as those agreed by official creditors.

The UK is also at the forefront of G7 initiatives on debt transparency, which is a key part of ensuring longer-term debt sustainability. We have improved our own practices by publishing detailed loan-by-loan information of new lending, a position which was also adopted by the G7 in June 2021.