South Africa
Debate between Lord Oates and Lord Cameron of Chipping Norton(6 months ago)
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Lord Oates (LD)
My Lords, does the Foreign Secretary share my regret that, notwithstanding the state visit by President Ramaphosa, over recent years the relationship between the UK and South Africa, both politically and economically, has declined significantly, with the value of UK exports less than a third of what it was when he was Prime Minister? Will he take steps to show that we value the relationship with South Africa by urging the Prime Minister to visit South Africa following its elections and by accepting the invitation himself to attend the service of thanksgiving and commemoration for 30 years of democracy in Westminster Abbey on 16 July?
Lord Cameron of Chipping Norton (Con)
I will certainly look at my diary for 16 July. However, that might be the week of the EPC so I think we will be extremely busy welcoming about 50 Heads of State and Foreign Ministers to the UK. We work hard at this relationship. Obviously, where it went into reverse in some regards was during the period of President Zuma and the problems of state capture when, quite rightly, Britain sanctioned a series of individuals involved in that episode. President Ramaphosa has been trying to recover from that. That is why I said in my answer to the right reverend Prelate that we should try to help South Africa deal with some of the things that took it backwards under President Zuma.
Low and Middle-income Countries: Debt Restructuring
Debate between Lord Oates and Lord Cameron of Chipping Norton(8 months, 2 weeks ago)
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Lord Oates (LD)
My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I declare my interests as set out in the register.
The Secretary of State for Foreign, Commonwealth and Development Affairs (Lord Cameron of Chipping Norton) (Con)
My Lords, I have raised this issue directly with the Chancellor of the Exchequer. I completely understand the concern to ensure that private sector debt is fully part of debt restructuring for low and middle-income countries. There is a range of arguments that we should consider on this issue and we need to be mindful of the impact that legislation could have, including on the cost of and access to finance for partner countries.
Lord Oates (LD)
My Lords, I thank the Foreign Secretary for that Answer. He will be aware that lobbyists for private creditors made the same arguments ahead of the Debt Relief (Developing Countries) Act 2010, but when the Liberal Democrat-Conservative coalition reviewed the working of the Act in 2011, it found it to be a successful measure with no evidence of unintended or adverse effects. Given that the majority of relevant bonds are governed by English law, will the UK take a lead to ensure that private creditors take part in sovereign debt restructuring on the same terms? Will the Foreign Secretary work with the New York state authorities, which are also considering this issue?
Lord Cameron of Chipping Norton (Con)
Obviously, I remember fondly when we were working together in passing the Act to which the noble Lord refers. When that Act was passed there was a real problem with vulture funds acting as hold-outs in debt reconstructions. While there are still arguments for the approach he is taking, we have to ask: will it affect the cost of capital for poorer countries to borrow, will it affect the availability of capital and, crucially, now that we have the collective action clauses and the majority voting provisions, is it still necessary to have this sort of legislation? The IMF reviewed this in 2020 and concluded that things were working well, so there is a concern in my mind that the approach he is talking about is perhaps relevant to what was happening in the past rather than relevant to what is happening now. I think we should keep an open mind on it.