The world's biggest economies seem to be stuck in a business-as-usual mode in the face of the unprecedented multiple crises of the COVID-19 pandemic, the economic recession and the climate emergency.

ATTENTION G20: No to Covid Loans, Cancel the Debt

The world's biggest economies seem to be stuck in a business-as-usual mode in the face of the unprecedented multiple crises of the COVID-19 pandemic, the economic recession and the climate emergency.

G20 members launched in April this year a debt service suspension initiative (DSSI) for just 73 countries and for a very limited period of a few months. Principal and interest payments will proceed after the period of suspension. This November 2020, the G20 adopted the “Common Framework for Debt Treatments beyond the DSSI.” This Common Framework still misses the mark, insisting that “debt treatments will not be conducted in the form of debt write-off or cancellation.”

The business of lending continues. A combined total of US$205.5 billion of loans for Covid-19 response measures have been made available by the World Bank, the African Development Bank, the Inter-American Development Bank, and the Asian Development Bank thus far. To peddle these loan packages that will eventually result in greater debt burdens is outrightly and starkly perverse and unjust.

We call the attention of the G20, lenders and governments to an Open Letter signed by over 590 civil society groups from 98 countries calling on world leaders to do more. We demand outright debt cancellation for all countries in need and on the basis of the illegitimate nature of much of the debts.

The full Open Letter with signatures is posted here: https://www.debtgwa.net/resources