Question to the HM Treasury:

To ask Her Majesty's Government what plans they have to raise the issue of debt relief for the world's poorest nations during any forthcoming meetings of the G20.

HM Government is concerned that the COVID-19 pandemic has exacerbated the debt vulnerabilities low-income developing countries, which were already at worrying levels before the crisis.

While the UK cancelled most of our low-income developing country debt under the Heavily Indebted Poor Countries (HIPC) Initiative, the Chancellor joined his G20 counterparts to commit to a temporary suspension on debt service repayments from the 77 poorest countries under the debt service suspension initiative (DSSI). Through the DSSI, official creditors will provide up to US$12bn of cash flow relief to help countries respond to the health and economic impacts of COVID-19.

The Chancellor raised the DSSI with his G20 counterparts this month to ensure full and transparent implementation and to announce a UK contribution to the African Legal Service Facility to empower borrowers to engage with their commercial creditors. The DSSI provides the breathing room for countries to respond to the crisis and for the international community to determine what further support may needed for countries on a case-by-case basis. If debts do require restructuring, the UK will work with the Paris Club of official creditors, IMF, and WBG to support equitable debt reductions and long-term sustainable growth.