How to grow debt

Jubillee logo A recent campaign by the Jubilee Debt Campaign highlighted a few issues including:

  • The people with the money seem to think that the best way to help a country which is up to its neck in debt is – to lend it some money.  For example back last summer there was a report on Ghana which had debt cancelled in 2004 and 2005 but looks as though its debt repayments will rise to the same amounts or more by the mid 2020s.
  • The government seems to think that lending money is giving aid.  Apparently as long as the interest rate charged is less than 7%, government loans can be classed as aid.
  • Most lending to low-income countries comes from international lenders including the World Bank and the IMF

I know I am a simple soul, but this does not sound like the best way to help countries out of debt.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s