The new global debt crisis and its solutions
This report outlines why, following the historic success of the Jubilee 2000 debt campaign, the world once again faces an acute global debt crisis in 2025.
Many of the world’s poorest countries have been plunged into a new debt crisis.
The number of low and middle-income countries in debt crisis has more than doubled since 2015: 54 countries are now in debt crisis compared to 22 countries in 2015.
Despite facing significant poverty burdens, countries are having to make huge repayments on high-interest loans to wealthy banks, institutions and governments, leaving them unable to properly fund essential services.
Nearly half of the global population – 3.3 billion people – now live in countries that spend more on debt servicing than on health or education.
Call for debt justice in the Jubilee Year
In the Jubilee Year 2025, people across the world are uniting in solidarity to demand action on the global debt crisis.
What has Pope Francis said about the global debt crisis?
Speaking on 1 January 2025, Pope Francis called for urgent action on the global debt crisis:
"In the spirit of this Jubilee Year, I urge the international community to work towards forgiving foreign debt in recognition of the ecological debt existing between the North and the South of this world. This is an appeal for solidarity, but above all for justice."
Shouldn't debts just be repaid?
In many countries, debts are being paid at the expense of hiring doctors and teachers, building schools, hospitals and sewage systems, preparing for floods, or coping with droughts.
The amount that lower-income countries spend on debt payments has increased by 150% since 2011. This debt burden also leaves countries less able to cope with the increasing effects of climate change.
Read more in our FAQs about the new debt crisis
The UK has the power to tackle this
Because the majority of loans granted by big banks are governed by English law, the government could legislate to force lenders to stop demanding payments from countries facing a debt crisis.
As record sums of money flow from the poorest nations to line the pockets of the world’s biggest banks, we need to take a stand.
Sandun Thudugala from the Law and Society Trust in Sri Lanka
In Sri Lanka, debt is having a devastating impact
Sri Lanka’s debt crisis has contributed to 25% of the population living in poverty, up from 13% three years ago. In 2022, the government spent 35% of its revenue on paying back debts.
Sandun Thudugala from the Law and Society Trust in Sri Lanka, says, “A normal person has to bear the burden of this debt crisis. There is no medicine in hospitals and equipment is not available. Families don’t have enough food.”
The Bible teaches us that money lending is about accompanying vulnerable people, not about profiteering. But in our current global system, powerful banks make huge profits from the vulnerability of poorer nations.
Pope Francis has declared 2025 a ‘Jubilee year’, which in the Church is historically a time for cancelling debt and restoring equality. In a special message about the Jubilee year titled 'Spes non confundit', or 'Hope does not disappoint', Pope Francis said:
"Another heartfelt appeal that I would make in light of the coming Jubilee is directed to the more affluent nations. I ask that they acknowledge the gravity of so many of their past decisions and determine to forgive the debts of countries that will never be able to repay them. More than a question of generosity, this is a matter of justice.”
As we prepare for the Jubilee year, we're calling for urgent action on the global debt crisis.
Learn more about the new debt crisis
Watch our webinar
Watch our webinar to hear about how the global debt crisis is impacting the lives of millions of people across the world.
Debt crisis FAQs
"Shouldn't all debts just be repaid?" Read the answer to this and other questions about the new global debt crisis.