Now is The Time to Act: Six Reforms for the G20 Common Framework for Debt Treatments

In this report Save the Children UK and Debt Justice UK outline the six reforms needed for the G20 Common Framework for Debt Treatments, the main international mechanism for restructuring unsustainable sovereign debt. The report is endorsed by 11 organisations and coalitions, with H.E. Francisca Tatchouop Belobe, the Commissioner for Economic Development, Trade, Tourism, Industry and Minerals (ETTIM) at the African Union Commission setting the scene with a powerful foreword.

The Common Framework has failed to deliver timely and adequate debt relief. The countries that have applied have faced lengthy negotiations and uncertainty. Expanding on the African Union Common Position on Debt, the report sets out the six practical reforms needed to make the Common Framework faster, fairer and more effective. It includes significant evidence on support for these reforms, including specifically on UK legislation.

Fixing the G20 Common Framework is a collective action problem. The recommendation of this report is that G20 Finance Ministers endorse it, and that unilateral and collective action is taken by G20 members, especially the UK, as well as the IMF and the World Bank to implement the proposals. With growing consensus amongst members, international institutions and civil society, the time for action on this is now and the G20 is the right place to start. Success could contribute to the broad conditions needed for greater global stability – with positive effects that ripple down to local postcodes, across both G20 and non-member countries.