Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor for the Exchequer, what assessment he has made of the adequacy of progress on sovereign debt restructuring processes for low and middle-income states at the Global Sovereign Debt Roundtable on 12 April 2023; and what his priorities are for the next Global Sovereign Debt Roundtable.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The focus of discussion at the last Global Sovereign Debt Roundtable (GSDR) was around the actions that can be taken now to accelerate debt restructuring processes and make them more efficient. I fully endorse the agreement reached to: (1) improve information sharing at early stages of restructurings; and (2) discuss further the assessment and enforcement of comparability of treatment during restructurings. These deliverables will support the swift implementation of the Common Framework and other debt treatments that involve a diverse range of creditors, which is a priority for the UK at the G20 and other fora where debt is discussed, including the GSDR.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with the Secretary of State for Foreign, Commonwealth and Development Affairs, on reallocating more of the UK’s SDRs for development objectives.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Chancellor of the Exchequer and the Secretary of State for Foreign, Commonwealth and Development Affairs work together closely on foreign policy and development finance objectives.
On SDR channelling specifically, I refer the Hon. Member to the answer given on 6 March to Question 153706 to the Hon. Member for Birmingham, Hodge Hill (Mr. Byrne).
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the proportion of Ghana's sovereign debt payments that are eligible for the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative and are due to be made to (a) private creditors and (b) private creditors governed by English law.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
According to Ghana’s latest joint World Bank/IMF Debt Sustainability Analysis, commercial creditors held 24.7% of GDP of Ghana’s public debt stock at end-2020. As most private debt takes the form of tradable instruments, the amount of international debt held by private creditors governed by English law can fluctuate on a regular basis. While Ghana has made an application to the Common Framework, the scope and terms of its debt treatment are yet to be agreed by creditors.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has taken steps to provide assurances to the government of Ghana on UK support for a rapid and fair conclusion to any sovereign debt restructuring process for that country through the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The UK welcomes Ghana’s request for a debt treatment under the G20 Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative. We stand ready to deliver a debt treatment for Ghana under the Common Framework in a timely and efficient manner. Our support has been conveyed to the government of Ghana through the UK’s representation at the Paris Club.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) financial value of assets linked to Teodoro Obiang Mangue that have been frozen in the UK since his Department’s announcement of sanctions against that individual and (b) the number of (i) fines imposed for breaches and (ii) other enforcement actions taken in relation to that asset freeze.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, undertakes an annual review of frozen assets in the UK, requiring all persons or institutions that hold or control frozen assets in the UK to report to OFSI. Details of assets reported to OFSI in 2021 are not yet available and will be published in OFSI’s 2021-2022 Annual Review later this autumn. This figure will be provided on an aggregate basis so as not to disclose the value of funds held by particular individuals, consistent with data protection obligations.
OFSI’s website holds details of all monetary penalties it has imposed. OFSI does not comment further on enforcement activity so as not to compromise its operational effectiveness. The relevant page can be found here: https://www.gov.uk/government/collections/enforcement-of-financial-sanctions
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent diplomatic steps he has taken to influence the implementation of the G20 Common Framework for Debt Treatments to improve (a) timeliness of processes, (b) engagement with debt-distressed countries at earlier stages, (c) transparent estimates by the International Financial Institutions of debt relief requirements for each eligible country, and (d) participation by private creditors.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In November 2020, the UK, along with the G20 and Paris Club, agreed the Common Framework for Debt Treatments beyond the DSSI with the aim of delivering a long-term, sustainable approach to dealing with debt vulnerabilities.
The Common Framework considers debt treatments on a case-by-case basis, driven by requests from eligible debtor countries. In its February 2022 communique, the G20 reiterated its commitment to step up efforts to implement the Common Framework in a timely, orderly and coordinated manner. The UK plays an active role in these discussions through the G7, G20 and the Paris Club. Our priority is to work with our G20 partners to ensure swift progress and effective implementation of debt treatments under the Framework.
The G20 has also been explicit that under the Common Framework private sector creditors will also be expected to implement debt treatments on comparable terms to those agreed by official creditors like the UK. We are focussed on ensuring that the private sector fully plays its part in any debt treatments under the Framework.
Asked by: Lyn Brown (Labour - West Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to engage with the German G7 Presidency on agreeing a common approach to (a) debt relief and (b) debt sustainability for debt-distressed developing countries.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In November 2020, the UK, along with the G20 and Paris Club, agreed the Common Framework for Debt Treatments beyond the DSSI with the aim of delivering a long-term, sustainable approach to dealing with debt vulnerabilities.
For countries that make a request to the Common Framework, treatments can include both the reprofiling of debt or a full restructuring, which, depending on need, may entail debt cancellation. This should enable more efficient, equitable, and effective case-by-case restructurings, allowing low-income countries requesting debt treatment to benefit from a transparent and responsive approach.
Progress in implementing the Common Framework has been a regular feature in the Chancellor’s discussions in the G7 and G20. In its February 2022 communique, the G20 reiterated its commitment to step up efforts to implement the Common Framework in a timely, orderly and coordinated manner. The UK is highly supportive of this goal and will continue to support efforts to achieve this.