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Written question asked by Baroness Brown of Silvertown (Labour) on Wednesday, 20 March 2024, in the House of Commons. It was due for an answer on Friday, 22 March 2024. It was answered by Andrew Mitchell (Conservative) on Tuesday, 26 March 2024 on behalf of the Foreign, Commonwealth and Development Office.

Developing Countries: Debts

Question

To ask the Minister of State, Foreign, Commonwealth and Development Office, with reference to the oral contribution of the Secretary of State for Foreign, Commonwealth and Development Affairs of 12 March 2024, Lords Official Report, column 1910, If he will publish a summary of Treasury advice received by his Department on legislation concerning private creditors.

Answer

The Government recognises the importance of private sector lending to low-income countries. The UK, alongside international partners, expects private creditors to participate in debt restructurings on terms at least as favourable as bilateral (i.e. country) creditors.

At this time, the Government is focused on delivering a market-based (contractual) approach to private sector participation in debt restructuring, which the IMF have found to be largely effective in recent years. As part of this, the UK has led the development of Majority Voting Provisions for private syndicated loans. We engage regularly with the Treasury on this issue.

Secondary information

Type
Written question
Reference
19579
Session
2023-24
Related items
Subjects
Debts Developing countries
Link
View this Written question on www.parliament.uk