Iceland voters should demand new debt system
Campaign group calls for arbitration over Icesave debts; new international system would help fight poverty
Jubilee Debt Campaign (1) has called for an arbitration system to be established to settle the Icesave debt row, as Iceland’s voters go to the polls on whether to accept British and Dutch repayment terms tomorrow (2). They believe a ‘no’ vote in Iceland should prompt a radical shake-up in the way international debt is handled, which would mean that debts are not used as an justification for creditors forcing unjust measures onto debtor countries.
Campaigners believe that a new way of dealing with debt would not only help ensure stability in Europe, but would transform the potential of developing countries currently burdened by unjust and unpayable debts and assist their fight against poverty.
A ‘no’ vote is expected in tomorrow’s referendum, which could lead to the financial isolation of Iceland, for instance risking loans from the International Monetary Fund (3) as well as Iceland’s financial rating. Campaigners argue that this is a clear example of how the international lending system tends to turn a deficit into a crisis by laying the full responsibility for debt on the debtor. Together with the absence of insolvency procedures for sovereign states, indebted countries have no protection from unpayable or unjust debts and can be forced to repay irresponsible loans, at high rates of interest, even if basic services to its citizens are neglected.
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Jubilee Debt Campaign: Iceland voters should demand new debt system
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