Low and Middle-income Countries: Debt Restructuring

Debate between Lord Bishop of Leicester and Lord Cameron of Chipping Norton

Tuesday 12th March 2024 Lords Chamber

[Lord Cameron of Chipping Norton (Con)]

I thank the noble Lord for his question. It is true that what was teed up by Gordon Brown was nodded into the net by the coalition Government, and rightly so. We do not think that the law in Albany, New York state, is actually likely to get through; it has been sitting around for a long time. It is good in its intentions because it is trying to sort out the issue. But the IMF advice and the Treasury advice is that if we legislate in this way, particularly unilaterally, it would affect the cost and availability of finance to other countries, and it may mean that more of these financial deals are written elsewhere in a less advantageous way than is currently the case.

[The Lord Bishop of Leicester]

My Lords, as a country we carry a weighty moral debt to many low and middle-income countries, given our history. This moral debt is borne by business as well as government, and indeed by charities and faith institutions. Will the Government revisit the International Development Committee’s report on debt relief and the evidence supplied by the Jubilee Debt Campaign and Make Poverty History, to consider again how all sectors may work together to ensure a joined-up approach to supporting these countries?

[Lord Cameron of Chipping Norton (Con)]

The right reverend Prelate is absolutely right that we need to have good arrangements for this. That is why the common framework was put in place. The old arrangements under the Paris Club were fine when most of the debt was being written by France, Germany, Britain and America. The common framework tries to reflect that a lot of the money is now coming from Middle Eastern countries and from China and to make sure that all these countries can be involved in the resolution of these situations. It has been moving too slowly, but I still think it is the right approach to include this wider group of lenders in these resolutions.