Labour announces plans for Overseas Loan Transparency Act

Ahead of the G20 Finance Ministers meeting this
weekend, Labour announces plans for an Overseas Loan Transparency Act
which will establish a new compulsory register of overseas loans.

The new Act will require all lenders from the UK to disclose loans to foreign governments.

Labour are is taking this action to put an end to exploitative secret
loans to avert a new debt crisis for countries in the Global South.

Labour will take a stand against the injustice of countries having to
divert money away from public services to repay unfair international
debts at the same time as bearing the burden of a global climate crisis
they did not create.

Countries such as Mozambique are already struggling under crippling
debt burdens after London-based banks were able to issue secretive loans
worth $2 billion without the knowledge of Mozambique’s parliament.
Subsequent debt burdens have triggered an economic crisis in the country
leading to rising inflation, higher food prices and increased rural
poverty.

Dan Carden MP, Labour’s Acting Shadow International Development Secretary, said:

“Tackling the growing debt crisis faced by countries in the Global
South is a matter of global justice and is central to our work tackling
the root causes of poverty and inequality and supporting people on
frontlines of the fight against poverty.

“Growing debt burdens often far outweigh any aid or charity given and
can present one of the greatest threats to poverty alleviation as money
that should be spent on public services is re-directed to debt
repayment.

“It’s been fourteen years since Labour led the way in securing the
cancellation of 130 billion dollars of debt for low-income countries at
the 2005 G7 Finance Ministers meeting. And today we are once again
taking action to avoid a new global debt crisis.”

John McDonnell MP, Labour’s Shadow Chancellor, said:

“We have to play our part in ending the scandal of secret loans to foreign governments.

“It’s time for the UK to take responsibility for upholding standards of probity and transparency.

“A Labour government will bring foreign policy in line with economic
policy – putting justice, solidarity and fair dealing at the heart of
everything we do.”