Question to the HM Treasury:

To ask Her Majesty's Government what plans they have to make greater provision to enforce due diligence on loans made to developing countries initiated by banks based in the UK.

The sustainability and transparency of debts held by low income developing countries is currently a G20 priority. Given the complex nature of sovereign debt, we continue to believe that internationally-agreed approaches are the most effective way to achieve progress in this area.

The UK recognizes that creditors, including private creditors, have an important role to play in promoting sustainable lending. The G20 is currently supporting the Institute of International Finance’s efforts to increase the transparency of lending to developing countries, which we hope will support sustainability and drive up standards.

Separately, in the UK, there are already prudential requirements for firms to hold sufficient capital against their exposures and have adequate risk controls in place. These are supervised by the Prudential Regulation Authority.