Debt justice

Stop Cowboy Lenders

Since the pandemic, increasing numbers of countries such as Zambia and Ghana are once again facing impossible choices between addressing poverty and environmental needs or paying off debts to foreign banks and governments. As interest rates rise around the world, the debt burden is only deepening. More than 50 countries are now in a debt crisis, with debt levels the worst they’ve been in decades.

In the face of the new debt crisis, banks and hedge funds are acting like cowboys – making millions in interest payments while lower income countries are left without enough money to pay for health and education, or deal with the climate crisis. Instead of cancelling some of the debt, they’re demanding it all –plus interest. A new campaign we’re running with Debt Justice, Cafod and others aims to tackle this

The UK is in a powerful position in this crisis. 90% of the loans given to the poorest countries are governed by UK law, meaning this country could force these banks to face reality and join in debt restructuring for countries in crisis. We’ve done something similar beforethe UK’s Debt Relief (Developing Countries) Act in 2010 cracked down on vulture funds profiteering from global south debts.

We need people to write to and/or visit their MP asking them to back this new law. With an election coming up, the aim is to secure manifesto commitments. Labour MPs representing East Ham, Birmingham Hodge Hill, Leeds Central and Hampstead and Kilburn may be influential in the party’s manifesto process, so please contact Skye at Debt Justice, if you live in one of those constituencies: skye.golding@debtjustice.org.uk

Online resources

Email your MP action on our website: globaljustice.org.uk/debt-cowboys

Debt Justice activist briefing on the campaign: gju.st/cowboys