debt relief

In reaction to the UN's 2024 edition of the SOFI report, Eric Munoz, Oxfam’s food policy expert, said: “Global hunger remains stuck at shamefully high levels, driven by many reasons that together become convenient excuses for our governments to avoid decisive action. 

Up to a quarter of a billion people are at risk of falling into extreme poverty this year due to the COVID-19 pandemic, climate crisis and the crisis in Ukraine. Global inequality threatens to rise massively unless more is done to effectively address this situation.
 

“Today’s lack of progress on debt relief is as irresponsible as it is underwhelming. Merely encouraging private sector creditors and multilateral banks to participate in the Debt Service Suspension Initiative (DSSI) is woefully inadequate and a dereliction of duty. The G20 is in denial of the scale of response needed to address the worse global crisis in a century," said Jaime Atienza, Oxfam International’s Debt Policy Lead, in response to the communiqué of the G20 Finance Ministers and Central Bank Governors Meeting.

The Covid-19 pandemic will not be defeated unless it’s defeated in all countries. In developing countries, where public health spending is often severely constrained, significant debt cancellation will be necessary to deal with the double whammy of health and economic crises.

The coronavirus pandemic is fast pushing developing countries toward a debt crisis that would be catastrophic for their fight against poverty, with the likelihood of multi-billion-dollar defaults that will hurt the entire global economy, warned Oxfam ahead of the G20 Finance Ministers’ meeting this weekend (July 18-19).

 

The Coronavirus crisis could result in a catastrophic loss of life in poorer countries and push half a billion more people into poverty. This week, the G20 finance ministers, the IMF and the World Bank can offer an instant lifeline – by cancelling all external debt payments for 2020. This could save $40 billion immediately and support almost 500 million of the world’s poorest to survive this crisis.

This Pakistan Development Forum meeting was a rare chance for donors to think outside the box for solutions to tackle some fundamental issues thrown up by the floods – one of the most devastating natural disasters this country has ever seen.

 

Consuelo Lopez-Zuriaga, Oxfam Head of Humanitarian Campaigns, said, 

International development organizations Oxfam, Plan, Eurodad and Concern Worldwide called today on EU leaders, meeting tomorrow for the first time to examine Europe’s role as a global power, to shift gear in their response to Pakistan.

The IMF will issue a $450 million loan to Pakistan which risks plunging Pakistan into debt that it can ill-afford. Oxfam is calling for the cancellation of all multilateral and bilateral loans to Pakistan, and for debt relief to be given on emergency assistance from the IMF.