14 AUG 2017
Thank you very much for taking the time to email me about transparency of loans issued to impoverished country governments by UK-based banks or under UK law and the related EDM, number 158.
I understand you would like me to sign EDM 158, however like many MPs I do not sign any EDMs no matter how worthy the cause. This is because EDMs now cost a huge amount per year to administer and have no chance of changing the Law. They are in effect petitions which only MPs can sign. They have also been superseded by online petitions which can be on any issue for which the Government or Parliament is responsible and any which receive 10,000 signatures will receive a response from the Government. Those petitions which reach 100,000 signatures will almost always be debated in Parliament – unless it is an issue which has recently been debated. There are also concerns that EDMs may give a false impression that action is being taken.
Nonetheless, I hope you will find the following information on this matter from the Treasury of interest:
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.
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