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<p>The International Monetary Fund (IMF) has recently reported that almost 40% of
Low Income Countries (LICs) now face significant debt-related challenges, up from
21% in 2013. The Government recognises that rising sovereign debt levels have led
to increased debt vulnerabilities in many LICs.</p><p>Though the Government has not
made its own assessment of the effect of high debt levels on the sovereignty and independence
of states, high levels of debt can leave countries exposed to adverse exogenous shocks,
like fluctuating commodity prices. Given the complex international nature of LIC sovereign
debt, we continue to believe that internationally-agreed assessments and coordinated
approaches to tackle debt vulnerability are most effective. The UK will continue to
work through fora such as the IMF, World Bank, G20, and the Paris Club to promote
LIC debt sustainability.</p>
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