PARLIAMENTARY DEBATE
Debt Reduction in the Developing World - 30 January 2024 (Commons/Commons Chamber)
Debate Detail
Contributions from Mr Andrew Mitchell, are highlighted with a yellow border.
Preet Kaur Gill
Birmingham, Edgbaston
11:59:01
Mr Andrew Mitchell
The Minister of State, Foreign, Commonwealth and Development Office
The Government recently set out our commitments on developing country debt in our international development White Paper.
11:59:43
Preet Kaur Gill
The main mechanism to tackle the debt crisis, the common framework for debt treatment, is failing due to the low level of participation by private creditors who own around 40% of low-income country debt. Does the Minister agree that there is strategic need for the United Kingdom to take debt reduction seriously and change its approach, given the crisis in Africa and the growing role of China and Russia in the developing world?
Mr Mitchell
The hon. Lady is right to point to the considerable difficulties that countries are finding. Some 15% of low-income countries are in debt distress, and 45% are at higher risk of that. The African Development Bank says that debt repayments in 2024 are likely to be six times the level of 2021. That is why Britain is working with other creditors to secure debt restructurings, most often through the G20 common framework, but also through the Paris Club.
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