Ahead of the G20 Finance Ministers meeting this weekend, Labour
announces plans for an Overseas Loan Transparency Act which will
establish a new compulsory register of overseas loans.
The new Act will require all lenders from the UK to disclose
loans to foreign governments.
Labour are is taking this action to put an end to exploitative
secret loans to avert a new debt crisis for countries in the
Global South.
Labour will take a stand against the injustice of countries
having to divert money away from public services to repay unfair
international debts at the same time as bearing the burden of a
global climate crisis they did not create.
Countries such as Mozambique are already struggling under
crippling debt burdens after London-based banks were able to
issue secretive loans worth $2 billion without the knowledge of
Mozambique’s parliament. Subsequent debt burdens have triggered
an economic crisis in the country leading to rising inflation,
higher food prices and increased rural poverty.
, Labour’s Acting Shadow
International Development Secretary, said:
“Tackling the growing debt crisis faced by countries in the
Global South is a matter of global justice and is central to our
work tackling the root causes of poverty and inequality and
supporting people on frontlines of the fight against poverty.
“Growing debt burdens often far outweigh any aid or charity given
and can present one of the greatest threats to poverty
alleviation as money that should be spent on public services is
re-directed to debt repayment.
“It’s been fourteen years since Labour led the way in securing
the cancellation of 130 billion dollars of debt for low-income
countries at the 2005 G7 Finance Ministers meeting. And today we
are once again taking action to avoid a new global debt
crisis.”
MP, Labour’s Shadow
Chancellor, said:
“We have to play our part in ending the scandal of secret loans
to foreign governments.
“It’s time for the UK to take responsibility for upholding
standards of probity and transparency.
“A Labour government will bring foreign policy in line with
economic policy – putting justice, solidarity and fair dealing at
the heart of everything we do.”
Ends
Notes to editors
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· According
to IMF ratings, the number of impoverished countries in debt
distress, or at high risk of becoming so, has more than doubled
from 15 in 2013, to 32 by the end of 2018. (Figures calculated by
Jubilee Debt Campaign based on IMF debt ranking data.)
