Ed Miliband today made a speech on global financial reform at the IMF and World Bank Annual Meetings in Bangkok. In the speech the UK Foreign Secretary said:
“Now, there is a small number of countries, and again, this was pointed out in the Rockefeller report, that need deeper relief. And this deal must also deliver faster debt restructuring through the G20 Common Framework, and we’ve got to improve the debt architecture in the longer term, so we don’t find ourselves in this position again, including ensuring that debt restructuring can’t be blocked by a single private lender.”[1]
Reacting to the speech, Tim Jones, Policy Director at Debt Justice, said:
“We welcome Ed Miliband’s commitment to action on debt during the UK G20 Presidency. He is right that the debt relief system urgently needs an overhaul. This must include deeper debt relief, a suspension of payments during negotiations and measures to ensure private lenders participate. We are delighted the Foreign Secretary said no single private lender should be able to block debt restructuring. The UK government can make this happen through legal changes to prevent lenders suing during restructuring negotiations or holding out from deals approved by other lenders. Private lenders must share the cost of debt relief schemes. Otherwise public money will just bail out private lenders rather than be used for investment.”
Notes
[2] Save the Children and Debt Justice’s report ‘Now is The Time to Act: Six Reforms for the G20 Common Framework for Debt Treatments’ is available at https://resourcecentre.savethechildren.net/document/now-is-the-time-to-act-six-reforms-for-the-g20-common-framework-for-debt-treatments