G20: More than 100 world faith leaders urge finance ministers to end debt crisis in Jubilee year

Source: CAFOD

One hundred and twenty-five faith leaders across continents have marked the Catholic Church's Jubilee year by issuing a call for G20 finance ministers to work for an end to a debt crisis crippling efforts to tackle poverty and action on climate.

The religious leaders argue in a letter to the finance ministers that the 'Common Framework' set up by the G20 in 2020 to restructure debts for low-income countries hit by the economic shock of the pandemic "is failing to produce the timely and adequate deals upon which millions of lives and livelihoods depend."

The faith leaders say one critical element is private creditors being able to "delay negotiations" with low-income countries, leaving governments spending more on debts "than on health, education or life-saving climate measures".

The letter - signed by cardinals, bishops and leaders of religious congregations, as well as representatives of different faiths - urges the G20 finance ministers meeting in Johannesburg between 26-27 February in the Jubilee year to embody the "Biblical practice of justice, mercy and reconciliation" by establishing a "fair and functional global debt system".

This call has become especially urgent in the light of the recent UK cuts to the aid budget following on from the freezing of USAID funds. The UK must now play a key role to ensure the desperately needed financial reform to enable more spending on health, education and climate action.

CAFOD's Lead Economist, Maria Finnerty, said: "The G20 Finance Ministers and Foreign Secretaries meetings in Cape Town this week are the first major meetings of G20 governments in this critical Jubilee year. Under the first ever African Presidency of the G20, the South African and other global South governments are calling on countries like the UK to create a more functional global debt system as African countries face historic levels of debt distress.

As a global debt superpower, with more than 90% of debts owed by low-income countries to private financial firms governed by English law, the UK government must show leadership this week by heeding the powerful words of faith leaders calling for meaningful debt reform. Tinkering around the edges is not sufficient: the world needs functional debt resolution mechanisms that reduce debts down to a genuinely sustainable level and prevent predatory and irresponsible lending and borrowing."

The religious leaders from countries including South Africa, Brazil, the US and Japan write:

"As faith leaders, we are deeply troubled at the impact this current debt crisis is having on the lives of the poorest and most vulnerable across the world.

"Debt restructurings under the [common framework] take three times longer than previous processes, while private creditors - now the largest creditor group globally - are able to delay negotiations and demand higher repayments than debtor countries can afford.

"This is leaving their citizens to endure hunger, lack of access to essential services, crumbling infrastructure and the worst impacts of the climate crisis."

The faith leaders call for legislation in key G20 jurisdictions to "ensure private lenders participate in debt cancellation and suspend payments to private lenders during negotiations."

The faith leaders cite the Jubilee year the Catholic Church is celebrating in 2025 as a powerful moment for the finance ministers to act with "courage, solidarity and compassion".

The letter signatories also acknowledge calls from Pope Francis for decision makers to address the global debt crisis during the Jubilee year.

The full letter follows below.

Letter from global faith leaders to G20 finance ministers on the global debt crisis

Dear G20 finance ministers,

In this Jubilee year 2025, a year of both material and spiritual liberation, Pope Francis has encouraged us all to be "Pilgrims of Hope" and in doing so address one of the most urgent issues which face us, that of the acute global debt crisis.

As faith leaders, we are deeply troubled at the impact this current debt crisis is having on the lives of the poorest and most vulnerable across the world. Today, the need for action is even greater than the last Jubilee in 2000, when the first campaign for debt relief was launched: 3.3 billion people - nearly half the global population - now live in countries that spend more on debt payments than on health, education, or life-saving climate measures.

We believe the G20 Common Framework is failing to produce the timely and adequate deals upon which millions of lives and livelihoods depend. Debt restructurings under the framework take three times longer than previous processes, while private creditors - now the largest creditor group globally - are able to delay negotiations and demand higher repayments than debtor countries can afford. This inefficiency and inequity has deterred nations in urgent need of relief from engaging with the framework, leaving their citizens to endure hunger, lack of access to essential services, crumbling infrastructure and the worst impacts of the climate crisis.

We must have a fair and functional global debt system. The Jubilee tradition calls for debts to be forgiven, land restored, and slaves freed. This Biblical practice embodied justice, mercy, and reconciliation, offering a renewed covenant with God and harmony within the community. With these principles in mind, we call on you to:

Champion a debt cancellation framework that brings debt payments down to a genuinely affordable level, suspends debt payments while debt cancellation is being negotiated, offers debtors assurances of sufficient debt cancellation before they apply, and compels all lenders to participate.

Pass legislation in key jurisdictions to ensure private lenders participate in debt cancellation and suspend payments to private lenders during negotiations.

Reform International Financial Institutions, ensuring that debtor countries are properly represented and that debt sustainability assessments and policy conditions centre human and environmental rights.

Support the creation of a UN Debt Convention to agree rules on resolving/settling debt crises, responsible lending and borrowing and the establishment of a public global debt registry so that all lenders and borrowing governments are held accountable.

Taking these steps will not only address the immediate debt crisis but also lay the foundation for a more just and resilient global financial system. As faith leaders, we urge you to be Pilgrims of Hope acting with courage, solidarity and compassion in this Jubilee year.

Signatories to the letter include:

Cardinal Stephen Brislin, Archbishop of Johannesburg; President
Cardinal Vicente Bokalic Iglic CM, Archbishop of Santiago del Estero; Member of the Dicastery of Evangelisation
Cardinal Jaime Spengler, OFM, Archbishop of Porto Alegre; President of the Latin American Episcopal Council
Cardinal Carlos Aguiar Retes Archbishop of Mexico; Primate of Mexico
Cardinal Isao Kikuchi, SVD - President, Caritas Internationalis; Archbishop of Tokyo
Rev Dr Anne Burghardt - General Secretary, The Lutheran World Federation
Bishop Susan C Johnson - National Bishop, Evangelical Lutheran Church in Canada
Reverend Doctor Setri Nyomi - General Secretary, World Communion of Reformed Churches
Sister Luzia Premoli, SMC - Superior Provincial, Comboni Missionary Sisters, Province of French-speaking Africa
Sister Teresa Hougnon - President, Maryknoll Sisters
Very Reverend Anselmo Ribeiro, SVD - Superior General, Society of the Divine Word
Mr Paul Chitnis Director, Jesuit Missions,UK
Bishop Brian McGee Bishop of Argyll and the Isles; President of SCIAF UK
Bishop Stephen Wright Bishop of Hexham & Newcastle; Chair of CAFOD, UK
Dr Christine Allen, Director, CAFOD UK