The banks, not the people of Mozambique, should pay creditors – Jubilee Debt Campaign

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The banks, not the people of Mozambique, should pay creditors – Jubilee Debt Campaign

4:38 CAT | 22 Mar 2018

The Jubilee Debt Campaign believes that Mozambique’s debt-restructuring proposal perpetuates the error of forcing Mozambicans to pay off the ‘hidden debts’, and insists that banks should compensate creditors.

“The Mozambican government’s proposals mean lower payments over the next few years, but it still leaves the Mozambican people having to pay for secret debts, on which they have not been heard and from which they received no benefit,” says economist Tim Jones.

Image result for Tim Jones, debt jubilee — *Tim Jones, Policy Officer Jubilee Debt Campaign*

Speaking to Lusa, the economist, who works for the NGO campaigning against unjust debt, added that “higher payments from the end of the next decade will divert resources from development to pay off an historically illegitimate debt”.

Commenting on the proposal submitted by the Mozambican government to creditors in London on Tuesday, Jones argues that the only solution for investors who lent money to public companies “is to accept that the debts are illegitimate and seek compensation from banks that facilitated the loans and the individuals who benefited from the business, not the Mozambican people”.

Source: Lusa