Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what role the London Coalition on Sustainable Sovereign Debt will play in shaping the UK’s approach to sustainable debt financing in developing economies.

The mission of the London Coalition on Sustainable Sovereign Debt is to work closely with the private sector to drive pragmatic, market-based solutions that support long-term, stable capital flows to emerging and developing economies (EMDEs) and improve outcomes in debt restructurings. By providing a formal platform for engagement with private creditors, across both bonded and non-bonded debt, the Coalition is advancing innovations in debt contracts, such as Natural Disaster Clauses (NDCs) and Majority Voting Provisions (MVPs), to promote transparency, orderly restructurings, and more resilient borrowing frameworks.

Enhanced transparency, grounded in strong governance and comprehensive data reporting, strengthens creditworthiness, facilitating greater market access, and expedites restructurings, giving countries quicker access to fiscal space when needed. To further bolster resilience, the Coalition is advancing contractual innovations like NDCs, which allow for the temporary suspension of debt service repayments in response to exogenous shocks, supporting macroeconomic stability and fiscal flexibility.

The UK’s approach to international sovereign debt extends beyond private sector engagement. The government is working through the G20 and the Global Sovereign Debt Roundtable to promote transparent and sustainable lending practices. This includes encouraging the publication of self-assessments under the G20 Operational Guidelines for Sustainable Financing and advocating for a more responsive and effective Common Framework, including pushing to expand its coverage to middle income countries.

Promoting debt sustainability for EMDEs is good for developing countries, creditors global prosperity. Tackling unsustainable debt is a key development priority for this government and a fundamental part of the international development toolkit.

The UK’s Trade Strategy, published in June 2025, underlines our commitment to supporting developing economies, simplifying access to the UK market, and deepening partnerships with the Global South to diversify supply chains and support development.