Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with private creditors on bringing them to the negotiating table to ensure that the Common Framework delivers adequate debt restructuring for countries such as Zambia with high levels of private debt.

In November 2020, the UK and other G20 Finance Ministers and the Paris Club agreed a new Common Framework for Future Debt Treatments. This applies to 73 of the poorest countries in the world and, for the first time, brings together Paris Club and major non-Paris Club creditors to provide joined up debt treatments where required.

The Common framework is an internationally agreed initiative and does not impact the rights of private creditors under UK law. However, under the Framework, debtors will be required to secure a debt treatment from their private creditors on at least as favourable terms as from their official sector creditors.

As G7 president, the UK will push to ensure the full implementation of the Common Framework. I strongly expect all private creditors to provide the debt relief needed to ensure debt sustainability for those countries who request a debt treatment, and we will engage regularly with the private sector to ensure their appropriate participation in restructurings.