G20: Debt Cancellation
Debate between Earl of Sandwich and Baroness Penn
Baroness Penn
The Government will continue to keep all options under review. In terms of debt forgiveness, the Government have committed a further £150 million to the IMF Catastrophe Containment and Relief Trust, which provides debt relief to low-income countries for their IMF payments. Twenty-five eligible countries will receive that debt relief for at least the next six months.
The Earl of Sandwich (CB) [V]
My Lords, I am grateful for what the Minister has already said, but I want to back up the right reverend Prelate because, given the public interest in debt relief, surely the Government could take the lead in debt cancellation as well as suspension during the pandemic. Does the Minister agree that DfID and the Treasury also have some responsibility for ensuring that the private sector cannot pursue LDCs for any default?
Baroness Penn
Debt relief can be an important route for some countries; however, in terms of UK support, under the heavily indebted poor countries initiative, the UK has written off most of its exposure to low-income developing countries and has since adopted a grant-based financing model. We need to look at all routes of support to these countries during the Covid epidemic.