Today marks the launch of the London Coalition on Sustainable Sovereign Debt. The coalition, convened by the Sustainable Sovereign Debt Hub and funded by the Children’s investment Fund Foundation, will bring together private sector stakeholders and Government to find pragmatic solutions to more sustainable sovereign debt financing in developing economies. This will include progressing work on debt contract innovations for bonds and loans to promote transparency, orderly restructurings and more resilient borrowing. Jose Vinals and I will be co-chairs for the coalition. Jose, who will serve in his personal capacity, will be able to draw on his vast experience in both the public and private sectors, most recently as chairperson of Standard Chartered.
The coalition seeks to provide a more formal avenue to engage with private lenders on issues affecting both bonded and non-bonded lending, in order to develop and implement solutions that will ensure that developing economies can access steady, long-term investment from the private sector.
Recognising that the various industry bodies that represent private lenders are not mandated by their memberships to take forward many issues that arise on the global policy agenda, the London coalition seeks to bring together new collaborations among high-ambition private sector market participants to achieve its mission. It has been pleasing to see such interest from our private sector colleagues thus far.
The coalition’s main priorities include making debt contracts clearer and more transparent, improving the way loan terms respond to natural disasters, and addressing problems with group lending practices. In bringing together a wide range of private sector stakeholders, the coalition will tackle broader co-ordination challenges that often arise when restructuring non-bonded debt, with the aim of delivering better outcomes for both borrowers and lenders.
Encouraging fair and open debt restructuring, alongside more resilient borrowing practices, will enable emerging economies to make meaningful progress towards their climate and development goals. The coalition leverages the UK’s strengths in financial services, helping to reinforce its status as a global hub for development finance and supporting economic activity and investment across the country. Direct investment in emerging markets can also drive UK growth by opening new opportunities for British businesses—particularly in financial services—and strengthening trade relationships with rapidly expanding economies in an increasingly uncertain global landscape.
Tackling international sovereign debt challenges is aligned with the UK Government’s plan for change, driving global financial stability while fuelling economic growth and safeguarding national security. By supporting developing countries in managing their debts more sustainably, the UK helps unlock new opportunities for trade, innovation and investment—benefiting British businesses. This leadership not only opens doors to new markets, but helps prevent the kinds of crises that threaten peace and prosperity worldwide, reinforcing the UK’s standing as a champion of responsible finance and a trusted partner.
Looking ahead, the coalition will continue to work collaboratively to develop practical solutions and drive meaningful reform in how countries manage their debts. To achieve this, it will engage closely with a wide range of stakeholders across the official sector, the private sector and the third sector, ensuring that diverse perspectives are represented.
Through ongoing dialogue and partnership, the coalition aims to deliver tangible progress on sustainable sovereign debt financing and support the broader development and climate ambitions of emerging economies.
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