This year, thousands of Global Justice Now supporters like you have called on big banks to cancel the debt, so lower income countries can respond to the pandemic rather than facing huge repayments to private creditors.
We’re showing them we’re watching, tackling inequality at its root causes. But this is just the start of a vital campaign. That's why I'm writing to you today, to ask you to donate to help reach more people, and ensure we can see this vital campaign for debt cancellation through to the end.
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Your donation will help us to get hard-hitting facts into the media, create resources empowering more people to take action, and work with allies to influence key decision makers. Please donate £3 in support of this campaign today.
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Amid the destruction of Covid-19, big banks are draining the global south of billions in debt payments
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While high-income countries like the UK can still borrow at record low interest rates during the pandemic, low-income countries are facing even higher interest rates. Some companies could be making up to 250% profit from the debt they own if paid back in full. Poorer countries are left with less money to spend on tackling Covid-19, the climate crisis, education and health.
Greedy private creditors deliberately target countries that might not be able to pay back their loans because they stand to make a huge profit if they do. They are choosing to gamble in a system where they ought to lose, but regulations are stacked in their favour. That means that rather than the banks taking the hit for bad lending decisions, powerful institutions are forcing governments to borrow more in order to keep paying, unleashing a never-ending cycle of debt and austerity.
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Covid-19 hasn’t just exposed the cracks; it’s deepened the chasms
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Right now, Africa is spending three times more on debt repayments to private banks and speculators than it would cost to vaccinate the entire continent against Covid-19. This includes companies like Blackrock, which controls assets over three times the size of the economy of all African countries.
That’s why this campaign for debt cancellation is so vital; the debt burden is costing lives and livelihoods. Without urgent action, global inequality will continue to get worse. It’s not just banks who need to hear us, we need key decision makers to enact regulation and reform.
This year the UK is hosting both the G7 and the COP26 climate talks. This gives us a platform to put debt cancellation on the agenda of decision makers. And so, as well as pressuring the banks, we’re calling on governments to enact urgent debt reform to enable low-income countries to respond to the pandemic, and to prevent them from being sued by banks and vulture funds (who buy the riskiest debt and then harass governments for far more than the vultures paid for the debt).
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Big banks are making a profit out of this crisis. We can't let this go on
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There must be far stricter laws and regulations on this broken system. The pandemic has highlighted just how urgent debt cancellation is and now it’s time to demand meaningful change.
A combination of public pressure on banks and on governments to enact regulations is the best way we have to fix this. If you can, please donate £3 today so we can ramp up the pressure.
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Together we can challenge this. The pandemic has highlighted just how urgent debt cancellation is and now it’s time to demand meaningful change.
Thank you for all you do in support of our campaigns for a fairer future. By challenging inequality at its root, we can build a world that works for everyone. I’m excited to be standing alongside you in this campaign, where together we have a real chance to make a big difference.
Best wishes,
Daniel Willis,
Campaigner at Global Justice Now
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P.S. Your donation today will help to see this campaign through to the end. We’re showing big banks and governments we want debt cancellation now.
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