Debt and the financial crisis

The financial crisis was caused by debt. Private banks in Europe and the US were allowed to lend recklessly. Whilst the same banks have been bailed-out, ordinary people across the world from Europe to Sierra Leone are paying the price.

 
IMF windfall

Despite cheerleading deregulation, the International Monetary Fund is doing well out of the economic crisis it helped to create. Profit from loans to countries such as Ireland, Jamaica and Pakistan, along with excess money from selling gold at a high price, have left the organisation with over $3 billion spare this year. But the financial crisis has increased the debts of many poorer countries.

TAKE ACTION: Sign the international petition calling on the IMF to spend windfall profits on debt cancellation for poor countries in crisis.

European debt
Meanwhile, the IMF and EU are repeating past mistakes in European countries such as Ireland and Greece. The European debt crisis closely resembles debt crises in developing countries over the last thirty years. Jubilee Debt Campaign has produced a new briefing Private Debt, Public Pain: What the Third World debt crisis means for Europe today.

The briefing shows the similarities and differences between European and Third World debt. We argue that with the effects of debt lapping on the shores of Europe, now is an opportunity to further the case for fundamental changes to bring about debt justice.

In December, Ireland agreed an austerity programme with the IMF. Our partners Debt and Development Coalition Ireland have warned that the IMF's track record shows that the institution seeks to silence voices for justice, and that its policies have failed impoverished people all around the world. You can read more about their response here.