I have recently received a number of e-mails regarding EDM 158 and the transparency of loans to developing countries.
EDMs have fallen into disrepute in recent years, as they cost around £400,000 a year to administer and have little legislative effect. As such, I choose not to sign them. Although I do not sign EDMs due to their excessive cost and limited legislative effect, I still felt it best to respond to the Motion here.
I can assure you that the UK continues to be at the forefront of international efforts to promote responsible lending and borrowing practices. This includes ongoing support for the IMF-World Bank Debt Sustainability Framework and OECD lending principles covering official export credits.
The UK also supports the African Legal Support Facility, which provides legal advice to countries facing litigation, and the World Bank’s Debt Reduction Facility (DRF), which enables countries to buy back their commercial debt at a deep discount with donor backing. Since its inception, the DRF has played a significant role in extinguishing commercial external debt from the books of the public sector of low-income countries.
Ultimately, the regulation of UK banks is a matter for the independent Financial Conduct Authority (FCA). The FCA has robust powers to investigate potential cases of misconduct and to enforce UK financial rules; this includes any issues around the lending practices of UK financial firms.
Thank you once again for contacting me about this important issue.