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.