G20: Debt Cancellation

Baroness Altmann Excerpts

Wednesday 10th June 2020 Lords Chamber

[Baroness Penn]

My Lords, we are in uncharted territory at the moment and the full impact of Covid on the developing world is unknown. The DSSI provides breathing space, so future restructuring of debts may be needed. The G20 has publicly called for the private sector to voluntarily participate in this initiative and, if it did so to the full extent, that would provide another $10 billion of breathing space for these countries.

[Baroness Altmann (Con) [V]]

My Lords, I thank my noble friend and the Government for all the work they have already done to help less developed and low-income emerging markets grappling with the health and economic fallout of Covid, especially from the fall in commodity prices. But I hope that the Government will consider debt forgiveness rather than just a debt freeze as we go through this unprecedented crisis, so that these countries can recover rather than having to continue to pay debts that have posed such problems in these times.

[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.