Jesuits join faith leaders in writing to G20 finance ministers calling for debt cancellation

More than 100 faith leaders, including a number of Jesuits, wrote to the G20 finance ministers this week, urging them to help end the debt crisis that is harming so many in low-income countries.

The joint letter, which was signed by some 125 people from across the world, pointed out that more needs to be done to address the issue of untenable debt repayments.

It noted 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 call comes in a Jubilee year for the Church, where Pope Francis has made a dedicated plea for the debt crisis to be addressed.

Signatories urged those in power to embody the “Biblical practice of justice, mercy and reconciliation” by establishing a “fair and functional global debt system”.

The G20 finance ministers, along with their foreign secretary counterparts, met in South Africa to seek solutions to global economic and social issues facing the planet.

It comes at a time when the UK government announced it would cut spending on overseas aid and shortly followed the USA’s decision to freeze its own aid funding.

“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.”

In the letter, signatories explained: “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.”

They added that private lenders must be included when it comes to debt cancellation, and that payments to such lenders be suspended during negotiations.

This year, Jesuit Missions is joining the call for the issue of debt to be confronted. It is running a campaign for Lent, urging supporters to contact Prime Minister Keir Starmer, asking him to advocate for a better approach to the debt situation.

Paul Chitnis, Director of Jesuit Missions, said: “Many low-income countries are unable to focus on the issues that matter, such as health, education and combatting the impact of climate change, because they are crippled by debt repayments.

“In this Jubilee year, those in positions of power have a responsibility to cancel these unjust and unsustainable debts, ensure private lenders contribute to debt relief, and create a more sustainable debt framework going forwards.”