Written question asked by Richard Foord (Liberal Democrat) on Wednesday, 21 January 2026, in the House of Commons. It was due for an answer on Monday, 26 January 2026. It was answered by Lucy Rigby (Labour) on Wednesday, 28 January 2026 on behalf of the Treasury.

Debts: Developing Countries

Question: To ask the Chancellor of the Exchequer, whether she is taking steps to ensure that private lenders who arranged to provide money to countries under UK legislation are (a) prevented from suing those countries when they are in debt distress and (b) encouraged to participate in debt relief negotiations for lower-income countries.

Answer

The UK, alongside the G20 and Paris Club, expects private creditors to participate in international debt restructurings on comparable terms.

At this stage, the government is not pursuing a legislative approach that would force private sector participation in restructurings. Overall, we have seen private creditors’ willingness to engage and provide debt treatments where needed, including for Zambia and Ghana – though we keep this under review

The government is focused on enhancing a market-based (contractual) approach to private sector participation The Economic Secretary is co-chairing the 'London Coalition on Sustainable Sovereign Debt', launched in June 2025 to work with private creditors on sovereign debt issues. The Coalition promotes the uptake of UK-led contractual innovations, such as Climate Resilient Debt Clauses.

Secondary information

Type: Written question
Reference: 107484
Session: 2024-26
Related items: Debts
Tuesday, 23 June 2026
Written questions
House of Commons; Debts: Developing Countries
Thursday, 15 October 2026
Written questions
House of Commons
Subjects: Debts Civil proceedings Developing countries
Link: View this Written question on www.parliament.uk

Debts: Developing Countries

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