Hi John,
Today we took our demands for debt justice directly to one of the big banks profiting during the pandemic.
We joined our allies and activists outside HSBC’s Annual General Meeting, at Queen Elizabeth Hall in London, to make our voices heard. We also supported shareholders to increase the pressure on HSBC by putting questions directly to the board in the meeting.
Big banks like HSBC hold large amounts of debt from global south governments, yet so far have not participated in debt relief efforts since the pandemic began. African governments are spending three times more on debt repayments to banks and speculators than it would cost to vaccinate the entire continent against Covid-19.
This is just the beginning. We need to keep building the pressure on the banks and make sure they can’t opt out of relieving the debt crisis.
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Why HSBC?
HSBC is a vastly wealthy financial corporation and one that plays a big roll in the global debt system.
In the past year, HSBC has made over $11 billion profit, and it now controls more wealth than the combined GDP of the entire African continent. It is one of the biggest owners of sovereign debt around the world, as well being one of the leading underwriters of government bonds.
When the pandemic was declared last year, HSBC donated $25 million to the international medical response. But our research found that it expects to receive ten times that amount back from just five governments in the global south in the coming years.
This is why we can’t rely on philanthropy from these big banks, or expect them to participate in debt relief on a solely voluntary basis. We need to make our demands heard loud and clear, and we need rich governments to pursue legislation that will compel the banks to act.
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Now is the time to demand debt justice
As we discussed in our webinar on debt justice this week, this year represents a crucial time to demand debt justice (if you missed the webinar, you can still view it here).
Firstly, the debt crisis faced by many governments in the global south could severely hamper attempts to respond to the Covid-19 pandemic and build a just, green recovery. For example, Zambia, which has already gone into debt default, is having to cut health spending in order to prioritise debt repayments and has so far only received enough Covid-19 vaccines to protect 0.6% of its population.
In the UK, we have a huge opportunity to build pressure on our own government ahead of G7 meetings this June. These are big opportunities for rich governments to bring big banks to the table, but they will only do that in response to significant grassroots pressure.
Many leaders in the global south have also highlighted the need for debt cancellation to form a part of a finance deal at COP26 climate talks in Glasgow in November. Without widespread cancellation to free up public finances, many countries will be unable to invest in renewable energy and climate adaptation.
That’s why this won’t be the last time we take our demands directly to the banks. We must demand debt justice, and we must do it now.
In solidarity,
Daniel Willis
Global finance campaigner at Global Justice Now
Learn more
[1] Debt cancellation: call on big banks to stop profiting during the pandemic, Ethical Consumer, 21 May 2021
[2] Our webinar: Cancel the debt - demanding debt justice for global recovery after Covid
[3] Big Finance Is Bleeding the Global South During Covid-19, Tribune, 8 April 2021
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The Covid-19 pandemic has pushed over a hundred million people across the world into extreme poverty.
Lower-income countries who are taking the hardest hit from the devastating pandemic are still saddled with huge debt payments to unaccountable private creditors in the global north.
Together we can challenge this, and fight for a more just and sustainable alternative. Regular gifts give us the long-term stability to plan effective campaigns, as well as the flexibility to react to key events.
If you’re not already a member, will you join today?
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