Question to the HM Treasury:

To ask Her Majesty's Government what discussions they intend to have with the most economically developed countries, the World Bank, and the IMF, about effective cooperation to deal with the COVID-19 pandemic and its economic consequences; and whether they intend to include conditional debt relief in any such discussions.

The UK Government continues to engage very closely and regularly with the international community, the World Bank, and the IMF, to respond to the economic impacts of the Covid-19 pandemic. G7 Finance Ministers continue to convene on a regular basis to work together on critical economic issues, and G20 Finance Ministers will next meet on 19 July to continue to coordinate the international response to the pandemic.

The UK recently led the development of the G20 Action Plan, which brings together ambitious and wide-ranging commitments to address the economic impact of the virus. As part of this, the Chancellor and his G20 counterparts, in close consultation with the World Bank and the IMF, agreed to a temporary suspension on debt service repayments from the poorest countries. We are working closely with G20 partner countries and international organisations (including the IMF and World Bank) to monitor the implementation of the Action Plan and ensure it maintains efficacy. The UK Government will also work through the G20 and Paris Club of official creditors to monitor sovereign debt vulnerabilities in developing countries closely.

To ensure that the most vulnerable are able to successfully respond to the crisis, the UK has also committed up to £150m to the IMF’s Catastrophe Containment and Relief Trust. This will suspend upcoming IMF obligations for the poorest countries, allowing them to better respond to Covid-19.