Oral Answers to Questions

Mary Kelly Foy Excerpts

Wednesday 10th June 2020 Commons Chamber

[Navendu Mishra (Stockport) (Lab)]

What discussions she has had with her international counterparts on requiring private creditors to cancel debt owed by developing countries during the covid-19 pandemic.

[Mary Kelly Foy (City of Durham) (Lab)]

What discussions she has had with her international counterparts on requiring private creditors to cancel debt owed by developing countries during the covid-19 pandemic.

[Kim Johnson (Liverpool, Riverside) (Lab)]

What discussions she has had with her international counterparts on requiring private creditors to cancel debt owed by developing countries during the covid-19 pandemic.

--- Later in debate ---

[James Duddridge]

Last time, the allocation was split, and I am sure we would want it to be used by developing countries if special drawing rights were exercised. That could be part of the solution, but as the hon. Gentleman knows, 85% of the banks need to agree, and the US effectively has a blocking right, which means that this is perhaps not a short-term solution but one to work on over time with international partners.

[Mary Kelly Foy]

I welcome the Government’s role in the G20’s suspension of bilateral debt payments due in 2020 from the world’s poorest countries, as well as their donation of £150 million to an IMF debt relief scheme used for covid-19. However, the World Bank is yet to take action on debt relief, despite that being one of the most important things we can do to support developing countries in this global pandemic. Can the Minister tell me what actions the Government will take to ensure that the World Bank moves to cancel debt payments, to support the world’s poorest?

[James Duddridge]

I thank the hon. Lady for recognising the work that has already been done on suspension and relief. That will perhaps be looked at again, in terms of private sector relief and expanding either the data or the amounts of both those schemes, before looking at cancellation issues, which will have a longer-term impact. We need to focus on solutions that will help immediately and leave longer-term solutions for the longer term, but that is still very much on the table. I would not want to leave the House with the impression the World Bank is doing nothing. The international development banks overall are putting $200 billion into developing countries over the next 15 months as a result of the covid crisis.