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.

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.