Covid-19 Debt Owed by Developing Countries 2021-03-09
2021-03-09
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Discussions about requiring private creditors to cancel debts owed by developing countries due to the economic impact of the pandemic.
What recent discussions has he had with international counterparts on requiring private creditors to cancel debt owed by developing countries during the covid-19 pandemic?
The Chancellor regularly engages with his international partners in the G7, G20 and the Paris Club on debt issues, including private sector participation in debt restructurings, and Treasury officials are also engaging with the private sector on this issue.
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Assessment & feedback
Specific commitments or agreements from private creditors were not addressed.
Response accuracy
Q2
Partial Answer
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Context
Concerns over international aid cuts and the impact on extreme poverty in developing nations, exacerbated by demands for debt repayment from UK-based banks and asset managers.
Will the Government urgently introduce new legislation to prevent developing countries from being sued in UK courts by banks, asset managers and vulture funds if they are unable to pay their debts as a result of the pandemic?
The Government support the role of low-income developing countries under the UK's G7 presidency and have made clear their expectation that the private sector, including firms like HSBC, BlackRock, and J.P. Morgan, will offer debt treatment on at least as favourable terms as the official sector, under the common framework agreed by the G20 last November.
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Assessment & feedback
Specific legislative action was not committed to.
Response accuracy