Commons Sense

House of Commons · Ministers' Questions

Covid-19: Debt Owed by Developing Countries

Tuesday 9 March 2021 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The Chancellor regularly engages with international counterparts in the G7, G20 and the Paris Club on debt issues, including private sector participation in debt restructurings.
  • Treasury officials are also engaging with the private sector on the issue of private creditors canceling debt owed by developing countries during the pandemic.
  • The Government have made clear their expectation that the private sector will offer debt treatment on at least as favorable terms as the official sector.

Topics (select to filter)

Questions & Answers

Q1 Mary Foy Lab City of Durham
Economy Foreign Affairs
Context

Discussions about requiring private creditors to cancel debts owed by developing countries due to the economic impact of the pandemic.

Question

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?

Answer from John Glen

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.

Partly answered

Not addressed: Specific commitments or agreements from private creditors were not addressed.

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Q2 Mary Foy Lab City of Durham
Economy Foreign Affairs
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.

Question

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?

Answer from John Glen

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.

Partly answered

Not addressed: Specific legislative action was not committed to.

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