Low and Middle-income Countries: Debt Restructuring

Lord Collins of Highbury Excerpts

Tuesday 12th March 2024 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I accept what the Minister is saying about legislative routes to bring private creditors into debt negotiations—it is extremely complex—but does he accept that what was included in the international development White Paper is insufficient to deal with the problem of debt? Will he commit to look at what further measures we can undertake to find a solution, including a new definition of debt sustainability, so that we can better understand what could be achieved?

[Lord Cameron of Chipping Norton (Con)]

I absolutely agree with the noble Lord. We must keep this under review and keep looking at it, asking ourselves what more we can do. As we do so, we should be guided in part by the IMF, which has a definition of debt sustainability. Even on its definition, things look very bleak when you look at the number of countries in debt distress or at risk of going into debt distress. But more necessary than a new definition is making the collective action clauses and the majority voting provisions work.