At the COP27 climate summit, the UK finance ministry announced plans to introduce new loans to support countries at most threatened by the impact of climate change, including the option to delay debt repayments in the event of a catastrophe. According to the Treasury, the export credit agency, the UK Export Finance (UKEF), will allocate these loans to low-income nations and small island developing states.
Further details of the plans are due to be announced at the COP27 climate summit, where discussions between global leaders have predominantly focused on the need for wealthier nations to do more to support developing countries manage the impacts of global warming. James Cartlidge, finance minister, explains that he is proud that UK Export Finance is the first export credit agency worldwide to provide loans that suspend debt service payments for nations impacted by climate catastrophes and natural disasters.
The proposed plans would enable vulnerable nations to defer debt repayments, freeing up funds and resources to assist with disaster relief.