Bringing all creditors onboard! - Monday 11.12.2023, 12:30 - 18:00

Following the Covid-19 pandemic, the first debt restructurings in countries of the global South are either underway or have already been carried out. Despite the creation of new exchange formats and mechanisms, it is clear that the complex coordination of creditors is hindering the rapid and sustainable resolution of debt crises. The restructurings negotiated in the "Common Framework for Zambia and Chad" - as well as outside this framework for Suriname or Sri Lanka - all follow the same pattern: in order to obtain the consent of all creditors, the actual debt relief is minimal. As a result, the agreements fail to restore debt sustainability. While the creditors are protected, the downside risks for the debtor countries are not taken into account. Creditors who do not abide by the agreements sue and threaten to undermine the debt restructuring negotiations - a problem that has existed for decades. Geopolitical tensions between China and the West threaten to further complicate negotiations. The resulting policy of the lowest common denominator is to the detriment of the people in these highly indebted countries. It threatens people's fundamental economic and social rights and, by restricting the fiscal leeway of debtor countries, the achievement of the Sustainable Development Goals (SDGs) and international climate targets.

Based on the proposal by erlassjahr.de, Brot für die Welt and Misereor: "Bringing all creditors on board without settling for a minimum consensus", the following challenges will be discussed with political decision-makers, academics and representatives of civil society: How can private sector participation in deep debt restructuring be ensured? Does the preferred creditor status of multilateral creditor institutions need to be reconsidered? How can constructive cooperation with China be achieved without settling for a minimum consensus?

The event will be held in English and you can still register here until November 30.