Big banks have continued collecting huge repayments from countries like Zambia throughout the pandemic. But there’s an opportunity to make them drop..

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Hi John,
Big banks have continued collecting huge repayments from countries like Zambia throughout the pandemic. But there’s an opportunity to make them drop the debt.

Last year, African governments paid over $23 billion in debt repayments to big banks and financial corporations in the global north. This is three times the cost of buying Covid-19 vaccines for the entire continent.

Zambia has been hit particularly hard by this debt crisis, and its government says it can’t make all of its repayments.

Yet despite calls from the Pope, the IMF and World Bank for banks to offer debt relief, they have refused to negotiate and forced Zambia into default.

But now the UK government is involved in negotiations over the future of Zambia’s debt. We need to use this opportunity to push for a fair solution to Zambia’s debt crisis, meaning one that involves debt cancellation.

We also need to send a message to the banks that they can’t get away with this. Join us in calling on Rishi Sunak to ensure debt justice for the Zambian people.
Demand debt justice for Zambia ([link removed])


** Debt justice means climate and health justice
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Zambia’s crisis is particularly bad because a higher proportion, 59%, of its debt repayments in the coming years are owed to private sector banks and corporations.

The interest on these debts is often much higher: if paid back in full, the banks can expect to make up to 250% profit on Zambia’s debt.

That means the Zambian government has to prioritise repaying these banks over investing in vital public services and climate projects that protect its citizens.

Zambia’s debt repayments are nearly three times its annual climate adaptation budget, and nearly four times its annual healthcare budget.

How are governments in the global south meant to tackle the pandemic, deal with the climate crisis and protect its citizens if they have to keep paying these banks billions? Join us in calling for justice.
Tell Rishi Sunak to drop Zambia’s debt ([link removed])


** Why debt cancellation is the only fair solution
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The banks and corporations that hold Zambia’s debt, including BlackRock, JP Morgan, Standard Chartered, UBS and HSBC, are some of the wealthiest companies in the world.

BlackRock alone controls $10 trillion worth of wealth - over three times the combined GDP of all African economies.

When they invest in global south debt, these banks gamble on continued GDP growth and against any crisis emerging. The problem is: they were wrong.

Their bets shouldn’t have come off because the pandemic initiated a global economic crisis. Yet unlike anyone else who’s lost on a bet or investment, the rules of our global economy allow the banks to keep collecting on their debts.

Global south debt is not an example of reckless borrowing, it’s a problem of reckless lending.

With the heads of the UN, IMF and World Bank all calling on the banks to do more, we have to increase the pressure on the UK government to stop big banks profiting from the pandemic.

In solidarity,

Daniel Willis
Finance campaigner, Global Justice Now

Read more:

[1] There can be no eco justice without debt cancellation. Huck Magazine, November 2021 ([link removed] )

[2] Debt and the climate crisis: a perfect storm. Briefing, September 2021 ([link removed]. )

[3] Under the radar: Private sector debt and coronavirus in developing countries, October 2020 ([link removed])
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** The Covid-19 pandemic has pushed over a hundred million people across the world into extreme poverty.
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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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