Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Department's Answer to Question 107484 on the 28th of January 2026, whether he intends to review the Government's decision regarding legislation to require private creditors to participate in sovereign debt relief arrangements on comparable terms to official lenders.

The government has no current plans to pursue a legislative approach which would force private sector participation in restructurings. Overall, we have seen private creditors’ willingness to engage and provide debt treatments on comparable terms where needed – though we continue keep this under review.

The Economic Secretary co-chairs the 'London Coalition on Sustainable Sovereign Debt', which brings together government and private sector stakeholders to find innovative solutions to more sustainable sovereign debt financing in developing economies. With a focus on private debt, the Coalition will continue to drive improvements in debt transparency, resolve challenges with private sector creditor coordination, and champion the uptake of UK-led contractual innovations in private lending, namely debt pause clauses, which allow countries hit by major shocks to temporarily defer debt payments in a clear and a time-bound manner.