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Written question asked by Preet Kaur Gill (Labour) on Tuesday, 11 July 2023, in the House of Commons. It was due for an answer on Monday, 17 July 2023 (named day). It was answered by Anne-Marie Trevelyan (Conservative) on Monday, 17 July 2023 on behalf of the Foreign, Commonwealth and Development Office.

Developing Countries: Debts

Question

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, with reference to the International Development Committee's Eighth Special Report of Session 2022–23, HC1393, published on 8 June 2023, whether his Department commissioned research to assess the level of private sector lending to low-income countries in the last decade to support his Department's conclusion that a legislative approach to debt relief is not needed.

Answer

The Government recognises the importance of private sector lending to low-income countries. Government borrowing can be a positive source of development finance if done sustainably.

At this time, the Government is focused on delivering a market-based (contractual) approach to private sector participation in debt restructuring.

An International Monetary Fund (IMF) Review in September 2020 found this approach has been largely effective. As such the UK led the recent development of Majority Voting Provisions for private loans.

The UK, alongside international partners, expect private creditors to participate in debt restructurings on terms at least as favourable as bilateral (i.e. country) creditors.

Secondary information

Type
Written question
Reference
193406
Session
2022-23
Related items
Subjects
Debts Developing countries Private sector Loans Research
Link
View this Written question on www.parliament.uk