Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Government is taking steps to encourage private lenders to contribute to debt relief efforts for low-income countries facing debt crises.

The UK, alongside the G20 and Paris Club, has been clear that private creditors are expected to participate in debt treatments on terms at least as favourable as bilateral (i.e. country) creditors.

More broadly, the UK has led on innovations to enhance the market-based approach to private debt restructuring, for example by developing new model ‘majority voting provisions’ for private syndicated loans. These promote more efficient restructurings and reduce the ability for creditors to hold out.