Question to the HM Treasury:

To ask Her Majesty's Government what discussions they have had with international counterparts about requiring private creditors to cancel or suspend repayments on debt owed by developing countries during the COVID-19 pandemic.

Her Majesty’s Government is deeply concerned about the impacts of the COVID-19 pandemic on low-income developing countries. It is vital that all creditors work together to ensure that countries especially vulnerable to the pandemic are able to protect their citizens and economies.

The Chancellor and his G20 counterparts called on commercial creditors to participate in the G20 Debt Service Suspension Initiative, which suspends payments due from the 77 poorest countries, on comparable terms to the official sector.

Her Majesty’s Government is working closely with the Paris Club of official creditors and Institute of International Finance (IIF) to facilitate private sector participation. On 28 May, the IIF published a Terms of Reference to guide its members’ responses to DSSI-eligible requests for commercial forbearance.