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Written question asked by Rupa Huq (Labour) on Monday, 5 June 2023, in the House of Commons. It was due for an answer on Monday, 12 June 2023 (named day). It was answered by Andrew Mitchell (Conservative) on Monday, 12 June 2023 on behalf of the Foreign, Commonwealth and Development Office.


Developing Countries: Interest Rates

Question

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what steps he is taking with Cabinet colleagues to help mitigate the impact of increases in interest rates on the debt repayments of developing countries.

Answer

The impact of changes in interest rates for developing countries' debt will depend on the terms of that debt, and any new debt they take on.

Those with the highest risk of debt distress receive grants from the Multilateral Development Banks (MDBs).

The Government is pressing for all creditors to offer loans with Climate Resilient Debt Clauses, which pause repayments if there is a natural disaster. UK Export Finance (UKEF) is the first export credit agency to offer these.

The Government will continue to work with its international partners in the Paris Club and the G20 to urgently address debt vulnerabilities in developing countries.


Secondary information

Type
Written question
Reference
187769
Session
2022-23
Subjects
Debts Developing countries Interest rates
Link
View this Written question on www.parliament.uk