25. April 2022

G7 campaign: Global Justice needs #CancelTheDebt!

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!

Find out more about the campaign on our campaign website.

More information