Foreign Secretary Ed Miliband is expected to state that the global financial system is failing developing countries, advocating for a "new deal" to assist governments burdened by debt. Speaking in Bangkok, Mr Miliband will urge the World Bank and other multilateral development banks (MDBs) to utilise their available resources to alleviate the high borrowing costs faced by these nations.
Mr Miliband is anticipated to say that the global financial system is failing to serve developing countries on debt, resilience, and climate, which he believes is against both UK values and national interest. He will call for action on developing country debt through MDBs, suggesting that international financial institutions should leverage their balance sheets to allow countries to repay over longer periods and refinance at better rates, providing crucial fiscal space.
The Foreign Secretary is attending the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok. He has chosen to take up the UK's seat on the bank's board himself. The UK is scheduled to assume the presidency of the G20 group of nations next year, a significant forum for discussing global financial issues, including sovereign debt.
Mr Miliband will also demand an overhaul of the "common framework" for restructuring the debts of countries unable to pay, which is criticised for being slow. The UK seeks changes to prevent private creditors from delaying negotiations, citing cases such as Ethiopia. Additionally, he will call for reforms to enable faster financial assistance to countries in crisis.