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<p>The Presidency has prioritised the issue of debt sustainability in the lead up
to and since COP26. The UK has championed the IMF’s $650 billion allocation of Special
Drawing Rights (SDRs) to help boost global liquidity and we are supporting the IMF
in establishing a Resilience and Sustainability Trust that will provide a long-term
financing offer for vulnerable countries facing structural challenges including climate
change.</p><p><strong> </strong></p><p>To support low-income countries to tackle their
debt vulnerabilities, in November 2020 the UK, alongside our G20 and Paris Club partners,
agreed a new Common Framework for Debt Treatment beyond the Debt Service Suspension
Initiative. This brings together G20 and Paris Club creditors to coordinate debt treatments
following a request from any of the 73 eligible low-income countries. Private sector
creditors will be expected to implement debt treatments on at least as favourable
terms as those agreed by official creditors. The UK-led G7 Private Sector Working
Group is also exploring Climate Resilient Debt Instruments (CRDIs), which will crucially
suspend any debt service repayments in the event of a natural disaster in climate
vulnerable countries.</p><p> </p>
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