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Written question asked by Earl of Sandwich (Crossbench) on Monday, 30 September 2019, in the House of Lords. It was due for an answer on Monday, 14 October 2019. It was answered by Earl of Courtown (Conservative) on Tuesday, 8 October 2019 on behalf of the Treasury.

Debts: Developing Countries

Question

To ask Her Majesty's Government what plans they have, if any, to initiate, or support, a new debt relief scheme designed to assist the least developed countries affected by climate change.

Answer

The UK is a member of the Paris Club of official creditors, and any bilateral restructuring of UK loans to other sovereigns is conducted through this group. The UK forgave most of our loans to the least developed countries through the Paris Club framework under the International Monetary Fund (IMF) and World Bank Group (WBG) Heavily Indebted Poor Countries (HIPC) initiative in the 1990s and 2000s.

The UK continues to play a leading role in discussions on debt sustainability and transparency in international fora, including on climate-resilient instruments. The UK has supported work through the Paris Club and G7 to develop “Hurricane Clauses” which can provide Caribbean sovereigns with cash-flow relief following natural disasters.

The UK also provides broader policy support to assist the least developed countries affected by climate change. The Prime Minister announced at the UN Climate Action Summit on 23rd September 2019 that the UK would be doubling its international climate finance commitment to £11.6bn over the next five years. This will include work to help vulnerable countries and communities become resilient to the damaging effects of climate change.

Secondary information

Type
Written question
Reference
HL17933
Session
2017-19
Subjects
Debts Climate change Developing countries
Link
View this Written question on www.parliament.uk