Commons Sense

House of Commons · Ministers' Questions

Africa: Sovereign Debt and Resilience to Climate Change

Tuesday 13 June 2023 · 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 Government recognises the challenging debt situation facing many African countries and is working with international partners to address rising debt vulnerabilities.
  • The UK Government is exploring the possibility of majority voting for debt settlements and is looking at legislative opportunities to involve private creditors in debt restructuring.
  • Next week, Britain will drive forward climate initiatives in relation to African countries.

Topics (select to filter)

Questions & Answers

Q1 Jeff Smith Lab Manchester Withington
Climate Foreign Affairs
Context

The question addresses the concern over rising debt levels in African countries and their ability to cope with climate change.

Question

What recent assessment has been made of the potential impact of levels of sovereign debt in African countries on their resilience to climate change?

Answer from Andrew Mitchell

The Government recognise the challenging debt situation facing many African countries. The UK is working with international partners to address rising debt vulnerabilities.

Partly answered

Not addressed: Specific assessment of impact on climate change resilience not provided, only general recognition of debt issues

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Q2 Jeff Smith Lab Manchester Withington
Economy Climate Foreign Affairs
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.

Question

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?

Answer from Andrew Mitchell

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.

Partly answered

Not addressed: Consultation on legislative opportunities not directly addressed, focus shifted to upcoming initiatives

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