Question to the Foreign, Commonwealth & Development Office:

To ask the Minister of State, Foreign, Commonwealth and Development Office, with reference to the oral contribution of the Secretary of State for Foreign, Commonwealth and Development Affairs of 12 March 2024, Lords Official Report, column 1910, If he will publish a summary of Treasury advice received by his Department on legislation concerning private creditors.

The Government recognises the importance of private sector lending to low-income countries. The UK, alongside international partners, expects private creditors to participate in debt restructurings on terms at least as favourable as bilateral (i.e. country) creditors.

At this time, the Government is focused on delivering a market-based (contractual) approach to private sector participation in debt restructuring, which the IMF have found to be largely effective in recent years. As part of this, the UK has led the development of Majority Voting Provisions for private syndicated loans. We engage regularly with the Treasury on this issue.