Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of calls for debt relief from emerging economies to help manage (1) the healthcare, and (2) the economic, consequences of the COVID-19 pandemic.

The Government is concerned with the rising debt vulnerabilities in low-income and emerging economies. In April 2020, G20 Finance Ministers agreed to pause debt repayments from the most vulnerable countries in 2020. On 14 October, the Chancellor met with his G20 counterparts where they agreed an extension of this initiative by 6 months, with the possibility of a further six month extension to be reviewed in 2021. The G20 focused on these countries as they are particularly vulnerable to the economic pressures of the pandemic.

On 14 October, G20 Finance Ministers also agreed, in principle, to a “Common Framework for Future Debt Treatments beyond the DSSI”. This historic achievement marks the first time creditors from the G20 and Paris Club of official creditors have agreed to participate in coordinated debt restructurings. The Common Framework will initially apply to countries eligible for the DSSI. The UK will continue to push for strengthened coordination on emerging economy debt issues.