CAFOD: UK must lead the way and end global sovereign debt crisis

As UK Chancellor Jeremy Hunt arrived at the IMF's Spring Meetings on Wednesday, CAFOD issued the following statement about this week's World Bank and IMF meetings and the urgent need for the UK to push for an end to the global sovereign debt crisis.

Maria Finnerty, Economic Justice Policy Lead at CAFOD, said: "As leaders gather in Washington DC for the International Monetary Fund (IMF) and World Bank Spring Meetings, the world sinks deeper into a global sovereign debt crisis, with the number of lower-income countries in crisis having more than doubled in under a decade.

"In the 80 years since the creation of the Bretton Woods Institutions, many countries remain stuck in a cycle of debt crisis and bailout: for Ghana and Sri Lanka, 2024 has seen them accept their 17th IMF bailout package.

"The definition of madness is repeating the same action and expecting a different result. It's time for countries like the UK to lead the way in forging a new approach that sets the global economy on a more stable path and puts an end to this debt crisis once and for all.

"In some cases, IMF bailout packages come with conditions that stunt development and have devastating human consequences. In Sri Lanka, CAFOD partners report that the IMF is, quite literally, 'turning off the lights on some of the most deprived communities', after they recommended the government slash electricity subsidies for Sri Lankans living in poverty. The UK is a major IMF shareholder and should demand more humane policies, which protect lives and create a stable global economy."

LINK

CAFOD - www.cafod.org.uk