Summit for a New Global Financing Pact fails to deliver on debt

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Responding to the outcome of the Summit for a New Global Financing Pact held in Paris this week, Tess Woolfenden, Senior Policy Officer at Debt Justice said:

“The Summit for a New Global Financing Pact has failed to deliver real solutions to the debt crisis in the global south. No new powers have been given to debtor countries to help them cancel unjust and unsustainable debts. In the absence of debt cancellation, more loans will just bailout previous lenders, while worsening the debt crisis.

“Lending countries money in response to the climate emergency means those who have done the least to create the climate crisis are being forced to pay for it. Instead, those most responsible in the global north must pay up for the damage they have created and cancel the debt so countries have the resources they need to respond to multiple crises.”

Carola Mejia, Climate Finance Analyst of LATINDADD said:

“The content and governance of the Paris Summit has been disappointing. It is an undemocratic space that promotes more loans, greater participation of MDBs and the private sector, which dilutes the responsibility of the global North in regards to their historical climate and ecological debt. It also promotes stronger carbon markets, debt swaps, which, among other things, reveal the intention to use the climate emergency as an excuse to deepen alternatives that LATINDADD and other economic justice movements have been criticizing for so long, because they don´t contribute to a true structural transformation of the international financial architecture, nor do contribute to solving the debt crisis in the global South.”