Reaction to G20 statement on debt in lower income countries

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Reacting to the G20 leader’s statement section on debt in low- and middle-income countries[1], Tim Jones, Head of Policy at Debt Justice said:
“A tidal wave of debt crises is flooding across lower income countries, but the G20 is treating it like a ripple. Their debt relief scheme has cancelled no debt. Private lenders keep laughing all the way to the bank while the G20 fail to make them take part in debt relief. Meanwhile the IMF lends more money which, in the absence of debt relief, bails out reckless lenders.”

On China calling for multilateral lenders to be included in debt relief, Tim Jones said:
”China is right to call for a multilateral lenders to be included in debt relief, alongside government and private lenders. Those who lent at the highest interest rates, primarily private lenders, should cancel the most debt. But only a comprehensive debt relief scheme covering all creditors can be effective in reducing debt burdens for all countries that need it.”

On the G20 welcoming private sector disclosure of their loans to the joint Institute of International Finance (IIF)/OECD Data Repository Portal, Tim Jones said:
“The private sector’s voluntary disclosure of loan information has become a laughing stock. Lenders first committed to publish loan information in 2019. In the three years since, just two banks have made any disclosures. Banks have made it clear that as long as lending transparency is voluntary, it won’t happen. Governments have to make private lenders publish the details of their loans.”[2]