§ Mr. ChaytorTo ask the Chancellor of the Exchequer what discussions his Department has had with British investors on their role and responsibilities in financial crises in emerging markets; and what part British investors have agreed to play in preventing and resolving future financial crises. [86943]
§ Ms Hewitt[holding answer 15 June 1999]We have been working with our G7 partners to develop a new approach to the involvement of the private sector in financial crisis prevention and resolution. This is designed to help promote more orderly crisis resolution and therefore be of mutual benefit to debtors and creditors. Methods of achieving this could include establishing investor networks and the inclusion of collective action clauses in sovereign bond issues. Private sector investors have been involved in the debate on this issue and we expect an appropriate response from them to any proposals which are agreed.