The pandemic has exacerbated the debt situation in the Global South: 135 out of 148 countries are critically indebted. More than three times as many countries as before the pandemic are already in debt crisis or directly threatened by debt distress.
While there are insolvency procedures for individuals and companies, there is no fair and efficient procedure for the restructuring of sovereign debt at the international level. Critically indebted states must therefore continue to service their debt even if this leads to unreasonable costs for their own population.
Almost all creditors, including the G7 countries, recognise the need for timely and comprehensive debt relief. This is the only way the UN sustainable development goals can still be achieved.
However, private creditors – i.e. banks and funds – refuse to participate in debt relief. This is particularly problematic as they hold around 60 percent of the claims on countries in the Global South. A sustainable solution can only be found if they are obliged to participate in debt relief!
Why are the G7 countries responsible?
Most private creditors are based in Western countries, e.g. the investment companies BlackRock in New York or the DWS Investment Group in Frankfurt am Main. The G7 countries could enact national laws that make it mandatory for private creditors to participate in debt relief. But instead, the G7 has only made moral appeals so far – without any success!
We call on the G7:
> > to take concrete steps to solve the debt crisis in the Global South; and
> > to finally hold private creditors accountable!
Dates
18-20 May 2022: Meeting of the G7 Finance Ministers in Königswinter and Bonn
26-28 June 2022: G7 Summit of Heads of State and Government in Schloss Elmau (Bavaria)
Out plans
Public Action: The global debt burden crushes global development
(19 May 2022 in Bonn)
While the G7 finance ministers are meeting on the Petersberg with a view over Königswinter and Bonn, we will show with a huge mountain of debt how the unsustainable debt burden prevents the achievement of the internationally agreed sustainable development goals. Supporters and media representatives are invited to attend.
Action Week: Campaign demands throughout the country
(15-22 May 2022)
Before and during the meeting of finance ministers in May and the summit of heads of state and government in June, we want to make our demand to the G7 visible throughout Germany and beyond: “Global justice needs #CancelTheDebt”.
Take the demand to social media. We will soon provide infographics and images to share on Facebook, Instagram and Twitter.
Protests in Munich And Elmau
(25-26 June 2022)
Together with a broad civil society alliance, we will also critically accompany the summit of the G7 heads of state and government in Elmau in June. Part of these protests will be an alternative summit on the same weekend. Find more information on the website of the alliance.
More information
- German campaign website
- Campaign background information and demands
- erlassjahr.de and MISEREOR: “Global Sovereign Debt Monitor 2022”, especially the article “A new opportunity to resolve the debt crisis. Prospects for the German G7 Presidency 2022” by Dr Klaus Schilder
Campaign partners
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