Africa Sovereign Debt and Resilience to Climate Change 2023-06-13
2023-06-13
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Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question addresses the concern over rising debt levels in African countries and their ability to cope with climate change.
What recent assessment has been made of the potential impact of levels of sovereign debt in African countries on their resilience to climate change?
The Government recognise the challenging debt situation facing many African countries. The UK is working with international partners to address rising debt vulnerabilities.
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Assessment & feedback
Specific assessment of impact on climate change resilience not provided, only general recognition of debt issues
Response accuracy
Q2
Partial Answer
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Context
The question addresses the need to consult on measures to compel private creditors to participate in debt restructuring, given that 90% of developing country debt is governed by English law.
Given that 90% of developing country debt contracts are governed by English law, why will the Government not agree even to consult on legislative opportunities to compel private creditors to take part in debt restructuring?
We are looking at that specific issue. We think there is a case for majority voting when it comes to debt settlements, and we are exploring all that. 15% of low-income countries are already in distress and 45% are at high risk of entering debt distress. Next week, Britain will drive forward climate-resilient debt clauses at the Macron summit in Paris.
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Assessment & feedback
Consultation on legislative opportunities not directly addressed, focus shifted to upcoming initiatives
Response accuracy