30/09/2026
The G20 Common Framework was created to help lower-income countries get out of unsustainable debt. But six years on, it still isn’t working.
Countries enter the process without knowing how much debt relief they’ll receive or how long negotiations will take. Debt payments are not automatically suspended, so some creditors can continue being paid while talks drag on. Private creditors can refuse to take part, hold out for a better deal, or threaten legal action. And unclear rules mean different groups of creditors negotiate separately over what they should contribute.
The result is a slow, uncertain process that leaves countries stuck in debt crisis with too little relief. This has damaged confidence in the Framework and discouraged many countries which need debt relief from applying.
With the UK taking over the presidency of the G20 next year, our government has a huge opportunity to help change the rules and fix the Framework.