Debts Written Off: Developing Countries
The question
To ask the Chancellor of the Exchequer, if she will bring forward legislative proposals to require private lenders to agree debt cancellation for lower income countries.
Answered by Darren Jones
The Government is committed to tackling unsustainable debt. Private lenders have an important part to play and alongside our partners in the G20 and Paris Club, we expect private creditors to participate in debt restructurings on comparable terms. This is a fundamental principle of the G20 Common Framework and we welcome recent agreements reached by bondholders of Zambia and Ghana.
At this stage, the Government is not pursuing a legislative approach that would force private or other lenders to participate in debt restructurings. The Government is focused on delivering a market-based (contractual) approach to private sector participation, to promote more efficient restructurings, reduce the ability for creditors to hold out, and increase transparency.
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