Cancel public external debt
…100 NGOs petition lenders
THERE is need for unconditional “cancellation” of public external debt payments by all lenders for at least four years for countries to navigate the hardships caused by Covid-19, over 100 international non-governmental organisations have said.
According to a letter addressed to governments, international institutions and lender institutions, the organisations stated that borrowing governments have it within their power to stop making debt payments but should not suffer any form of penalties for doing so.
They indicated that the Covid-19 had severely impacted on the health, safety and survival of hundreds of millions of people.
Communities worldwide, they said, were being pushed deeper into poverty, precarious existence and inequality with the massive loss of paid and self-employment.
They stated that livelihoods and further limiting of access to food, water and sanitation, adequate housing, education, health service and other basic needs had now become the order of the day.
“It is estimated that 500 million more people could be pushed into poverty as a result of the pandemic and the economic downturn that it has exceedingly exacerbated. In all the regions of the world, violence against women, girls and LGTBI people has escalated in number and severity,” they indicated.
The organisations, which include ActionAid, stated that there was a strong light on the continuing debt problem that was in the way of people’s survival, the fight against inequality, the realisation of their human rights, sovereignty and the self determination of people.
According to the organisations, over $300 billion was being spent annually by the global south for Public External Debt payment to bilateral and multilateral lendwers such as the World Bank and IMF, private banks, speculators and investors in government bonds and securities.
The organisations from different countries said the debt problem was compounded by illicit financial flows also in the billions of dollars.
“This is money that is vitally needed for public investment on vital healthcare to fight Covid-19, economic and structural assistance to affected, vulnerable and marginalised individuals, families and communities, and building Economies towards more just, equitable, climate resilient and sustainable systems,” the letter read in party.
They complained that the responses to the debt problem had been severely insufficient in the best case, and in many occasions counterproductive given the urgency and severity of the crisis being faced.