The world’s richest banks are making a fortune, while funds are drained from the poorest countries in the world
Many large banks and speculators – including Blackrock, JP Morgan, HSBC and UBS – are being repaid high interest loans from some of the poorest countries across Africa, Asia, Latin America and the Caribbean.
Lenders are acting like cowboys – making millions in interest payments while lower income countries are left without enough money to pay for health, education, or respond to the climate crisis.
The global economy is turning into the wild west and cowboy lenders are getting away with the world’s biggest stick up.
The past few years have seen debts owed by some of the poorest countries mount up to unsustainable levels. Due to the economic crisis and high interest rates, 54 countries are now facing a debt crisis. But instead of agreeing to cancel some of the debt, big banks and hedge funds are demanding it all – plus interest.
For countries like flood hit Pakistan, this is a disaster. 33 million people have been affected by flooding, made worse by the climate crisis. The country is due to spend $22.5 billion this year alone on debt repayments, with speculators able to make over 200% profit.
But we’ve got a chance to stop cowboy lenders holding countries to ransom.
Incredibly, UK law plays a key role in enforcing debt contracts – 90% of the lending to lower income countries is enforced through UK courts. That means we can push for a new law to make cowboy lenders cancel debt.
We can stop them in their tracks, but only if enough of us act. Will you add your voice to the campaign?