Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the risk of countries defaulting on repayments as a result of the COVID-19 pandemic.

The Government is closely monitoring the impact of the crisis on the debt situation in developing countries, including through our membership of the International Monetary Fund, World Bank and Paris Club. It is clear that the COVID-19 pandemic is placing extraordinary pressures on the finances of low and middle income countries. Recognising this, the G20 has taken action to support these countries, agreeing the landmark DSSI (Debt Service Suspension Initiative). The DSSI provides a suspension of debt repayments to eligible countries so they can focus resources on their coronavirus response. The UK is also pleased with the in-principle agreement by the G20 to a Common Framework for debt restructuring. This is crucial to ensuring coordinated debt relief to countries which require it on a case-by-case basis, with fair burden sharing between all official and private creditors.