MPs debate proposals to address the global debt crisis affecting 54 low-income and climate-vulnerable, in a move welcomed by CAFOD's Jubilee 2025 debt campaign.
Labour MP Bambos Charalambous, who has introduced a Bill to support greater debt relief for lower income countries in crisis, will lead a debate this afternoon in the Grand Committee Room of the House of Commons.
The event comes just days after the Minister for Development, Anneliese Dodds, gave a speech to the UK financial sector at the London Stock Exchange where she highlighted that “95% of African bonds [are] issued under English Law”. Ms Dodds acknowledged that the UK has “a key role to play" and called on private financial firms to play their part.
With the vast majority of debt owed by the world’s poorest countries being held by the City of London due, it is encouraging to see the UK government acknowledging the responsibility of firms based in the City to participate in debt relief.
Speaking ahead of today’s debate, CAFOD’s Lead Economist, Maria Finnerty, said:
“Introducing a law to compel private lenders to participate in debt relief is the single most significant thing the UK could do to unlock debt cancellation for debt-distressed countries – without costing British taxpayers a penny. In fact, this law would protect British taxpayers from having to bail out profitable private lenders.
“Only 4 countries have applied for debt relief, out of 70 who are eligible under the existing framework - a damning illustration of the lack of faith global South countries have in the process.
“If the UK government is committed to preserving multilateralism in 2025, it must take urgent legislative action to make debt relief frameworks functional and restore faith in the international system.
2025 is a Jubilee Year in the Catholic Church, with a focus on tackling inequality and injustice. Building on the legacy of the historic Jubilee 2000 debt campaign, faith and non-faith coalitions in 162 countries around the world are calling for urgent action on the new global debt crisis.
Maria Finnerty added:
“A Debt Justice Law would build on the powerful legacy of the last Labour Government, which passed a similar law in 2010, and demonstrate this government’s commitment to making the City of London a financial centre fit for the sustainable and responsible finance of the future.”
Notes to editors
Maria Finnerty is available for interview. Contact our Media Officer Rosalind Mayfield (rmayfield@cafod.org.uk, +44 (0)7856 799169) for more information.
CAFOD is the official aid agency of the Catholic Church in England and Wales, working with communities across Africa, Asia, the Middle East and Latin America to fight poverty and injustice, including those worst hit by climate change.
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.