Preventing and resolving sovereign debt crises: Stop bailing out reckless lenders

Briefing available in English, French and Spanish

In this briefing 35 civil society organisations set out how IMF loans are used to bail out reckless lenders. They call for the IMF to implement its policy of only lending to highly indebted countries if there is a debt restructuring which makes the debt sustainable, or if a country defaults on its debt. In the position paper released ahead of the IMF meetings they argue this is needed so that:

  • Fewer self-defeating public spending cuts are introduced.
  • IMF resources are no longer used to pay off previous lenders, incentivizing them to continue to act recklessly in the future.
  • Debt relief from the IMF is not needed in the future, as was required under the Heavily Indebted Poor Countries (HIPC) debt relief process in the 2000s.

The 34 civil society organisations are:

Jubilee Debt Campaign (UK)
African Forum on Debt and Development (Afrodad)
Latin American Network for Economic and Social Justice (Latindadd)
European Network on Debt and Development (Eurodad)
Jubilee Caribbean
Action Aid International
The Society for International Development
COAST (Bangladesh)
EquityBD (Bangladesh)
Centre national de coopération au développement, CNCD-11.11.11 (Belgium)
Gestos (Brazil)
Federation of Environmental and Ecological Diversity for Agricultural Revampment and Human Rights (FEEDAR & HR, Cameroon)
Plateforme Dette et Développement (PFDD, France)
Erlassjahr.de (Jubilee Germany)
The CSO Gender Platform (Gambia)
The Integrated Social Development Centre (ISODEC) (Ghana)
UndebtedWorld (Greece)
National Society of Conservationists – Friends of the Earth Hungary
Financial Justice Ireland
Budget Monitoring Forum (Mozambique)
The Mozambique Debt Group (Mozambique)
Both ENDS (Netherlands)
Debt Justice Norway
Freedom from Debt Campaign of Pakistan
Oikos – Cooperação e Desenvolvimento, Portugal
Jubilee Scotland
Lumiere Synergies pour Les Developpement (Senegal)
Budget Advocacy Network (Sierra Leone)
Enabanda (Slovenia)
Uganda Debt Network
Action for Argentina (UK)
Action for Southern Africa (ACTSA – UK)
Bretton Woods Project (UK)
Global Justice Now (UK)

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