The G20 have announced that Chad will not be getting any debt relief through their Common Framework for Debt Treatments. The G20 also failed to agree a statement, including making any improvements to the Common Framework.
Reacting to the lack of action on debt at the IMF Annual Meetings and G20 Finance Ministers meeting, Tim Jones, Head of Policy at Debt Justice, said:
“Everyone knows that a debt crisis is sweeping across lower income countries. But there has been a complete failure at all levels to do anything about it. The greatest risk is that the IMF and World Bank expand their lending, effectively paying off reckless lenders, while deepening the crisis. If there is no effective debt cancellation on offer, countries should simply stop paying, save money now, and force the world to take action.”
Reacting to the Chad announcement Tim Jones, Head of Policy at Debt Justice, said:
“The consortium of lenders led by Glencore must be laughing all the way to the bank. They’ve delayed the debt relief process for the last 18 months. During that time IMF loans have effectively been paying them off. Their reward is to keep being paid in full. If and when the oil price falls Chad will have to start all over again.”