Debts: Developing Countries

Treasury written question – answered at on 14 December 2020.

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Photo of Sarah Champion Sarah Champion Chair, International Development Committee, Chair, International Development Committee

To ask the Chancellor of the Exchequer, how many countries have (a) had, or (b) are expected to have, debt payments to the UK Government suspended under the G20 Debt Service Suspension Initiative in (i) 2020 and (ii) 2021; and how much debt has been suspended for each country.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The UK has been at the forefront of leading the international response in assisting developing countries to deal with debt challenges exacerbated by the COVID-19 pandemic. Through the G20 and Paris Club, the UK has supported a new Debt Service Suspension Initiative (DSSI) which has agreed to defer the debt service repayments of low-income countries until at least June 2021, ensuring they can focus their resources on the health and economic response to Covid-19.

As of 13 November 2020, 46 countries have requested to benefit from the DSSI, amounting to an estimated USD 5.7bn of 2020 debt service deferral. In relation to the UK, 10 countries have requested to benefit from the DSSI in 2020. The following table shows the amounts that the government has agreed to defer for 2020.

Country

Estimated deferred amount (USD million1)

Additional remarks2

Angola

0.57

1 contract in US (0.1m USD); 1 contract in EUR (0.43m EUR)

Dominica

0.89

1 contract in USD (0.89m USD)

Grenada

0.31

1 contract in GBP (0.24m GBP)

Lesotho

0.006

EU IDA credits, contract in GBP (4,935 GBP)

Myanmar

2.35

1 contract in GBP (1.72m GBP); 1 contract in USD (0.2m USD)

Nepal

0.51

EU IDA credits, contract in GBP (405,864 GBP)

Pakistan

0.66

1 contract in GBP (0.53mGBP)

Samoa

0.0008

EU IDA credits, recently identified by WBG, contract in GBP (663 GBP)

Yemen, Republic of

0.03

EU IDA credits, contract in GBP (23,325 GBP)

Zambia

0.90

1 contract in USD (0.9mUSD)

1 If the original currency of the agreement/country is not in USD, please convert in USD by using the exchange rates as of 30 April 2020 provided by the IMF

2 EU IDA credits are the UK’s share of EU credits delivered by the World Bank’s International Development Association

We cannot at this stage set out the information requested for 2021 as it remains for individual countries to approach the Paris Club and G20 to request to continue or newly take advantage of the DSSI extension.

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