Debt justice and COVID-19

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Covid-19 has accelerated the risks of debt distress and default for developing countries. Governments face pressure to service sovereign debt obligations, putting urgent health and social protection investments at risk. Developing countries require adequate fiscal space to manage the impacts of the multiple crises we face and to safeguard the lives of their most vulnerable citizens. This project promotes a global approach to debt financing that includes safeguards for developing countries to prevent them from falling into debt distress. It advocates for debt cancellation, the adoption of a legal framework to protect states that are indebted to private lenders and the use of sustainability assessments.

Why is now the time to act?

“Efforts to reduce debt service ratios are being prioritized over social investment, putting Agenda 2030 at risk. Human rights and dignity must be prioritized over the interests of creditors. Action is essential to ensure an inclusive and fair recovery for all, a reduced debt burden for developing countries and a strong financial system that contributes to the Sustainable Development Goals.”