Developing countries will be able to respond faster to economic crises through new proposals developed by the London Coalition and driven by the UK government.
Developing countries will be able to respond faster to economic crises through new proposals developed by the London Coalition on Sustainable Sovereign Debt and driven by the UK government.
These are designed to reduce the delays and uncertainty that make debt crises more damaging – for developing countries and for British investors and businesses with exposure to emerging markets.
Debt crises are becoming more common as global shocks increase. Faster and more predictable resolutions mean less economic damage, more stable markets and stronger growth in the UK and abroad. This is the Chancellor’s ‘securonomics’ in action – building a more resilient global economy to protect families and businesses from knock-on effects of international instability.
Two key products have been published this week by the London Coalition Secretariat:
Economic Secretary to the Treasury, Lucy Rigby, said:
By working with private creditors and international partners, we are harnessing the UK’s world-leading role as an emerging markets hub to support greater stability and resilience for developing economies.
We’re tackling the increasing number of worldwide economic shocks by strengthening the global financial system, safeguarding development gains, and protecting British business.
Co-Chair of the London Coalition and Former Chairman of Standard Chartered Bank. José Viñals said:
Emerging markets and developing economies are being hit by more frequent and severe shocks, but debt restructurings are still too slow and unpredictable. This further increases the economic damage.
The Coalition is focused on practical fixes – like a new guide for restructuring private loans and crisis pause clauses. These practical, voluntary tools, can make negotiations faster and more orderly when it matters most.
Efforts are being coordinated by the London Coalition Secretariat, a multistakeholder forum launched by the UK government in 2025 and co-chaired by the Economic Secretary to the Treasury Lucy Rigby and José Viñals.
The Coalition is focused on turning shared principles into practical, voluntary tools that sovereign borrowers in developing countries and private creditors can use in live negotiations to make outcomes faster, clearer and more predictable in response to economic shocks.
Both documents have been developed by private sector groups and follow iterative discussions held between the Coalition and borrowers in developing countries, investors, official sector stakeholders, rating agencies, and other market participants. These new pause clauses draw on the UK’s experience with Natural Disaster Clauses in UKEF lending, extending a similar shock-responsive approach to sovereign bonds.
This reinforcing London’s position as a leading emerging markets finance hub where standards and market practices evolve to support resilience and transparency.
Notes to editors:
https://www.gov.uk/government/news/uk-takes-lead-in-protecting-developing-countries-from-debt-crises