Home

To finance development, many poor countries have to take recourse to external loans. By itself this is not bad or dangerous because the debt can be used to , f. i., invest in infrastructure, raising the output of the economy.

But if loans are taken and given without considering the economic capacity of the debtor, the repayment could become a problem. In the 1970s and 1980s this led to the so called “Third World Debt Crisis”. Today we can observe a similar trend: Poor countries in Africa, Asia and Latin America have comparatively easy access to fresh money because low interest rates in the Global North make investments in the Global South very attractive.

Rules for responsible borrowing and lending are important since they make clear, that creditor and debtor share responsibility for the success of the lending operation.

Read more …

News

  • 17.3.2017

    Global Sovereign Indebtedness Monitor 2017

    The article lists debt indicators for all those countries that show debt indicators above critical thresholds for end-2015.  It shows that 116 countries in the Global South are critically indebted, which is 33 more than only two years ago. The highest average debt indicators are shown by affected countries in the CIS /…

    Mehr lesen ...
  • 8.12.2016

    Debt20 campaign hands over supporter logos to the upcoming German G20 presidency

    During a short ceremony in the German development ministry state secretary Thomas Silberhorn in representation of the German government received 185 institutional logos of organisations, which support the G20 call for a fair and efficient debt workout mechanism on November 9th 2016. Geoffrey Chongo of the Jesuit Centre for Theological…

    Mehr lesen ...