Commonwealth debt reform backed

The Scottish Government, Malawi and Zambia are calling on Commonwealth countries to work together to tackle the global debt crisis and give Global South countries a stronger voice in international financial decision-making.

A joint statement calls for urgent reforms to the international debt system, including: 

• fast and fair debt restructuring that helps countries resolve debt problems before they become crises
• a new international framework, led by the UN or another global body, to help countries resolve debt problems more fairly and efficiently
• new debt legislation ensuring private lenders share the burden of debt restructuring fairly with other creditors
• improved access to financial help for climate projects

It highlights growing concern that unsustainable debt repayments are limiting the ability of many countries in the Global South to invest in essential public services, climate resilience and economic development. 

Announcing the joint statement at a reception celebrating Scotland's longstanding relationship with Malawi, Zambia and Rwanda, First Minister John Swinney said:

“During my visit to Malawi and Zambia, I met communities who are taking control of their lives and livelihoods through Scottish Government supported, community-led climate resilience programmes, and I learned first-hand about the impact that both debt and climate injustice can have on communities.

“Across the Commonwealth unsustainable debt repayments are consuming resources that should be used to build schools, hospitals, and climate-resilient infrastructure, and climate change is exacerbating this problem. The Global South should not be forced to choose between repaying their creditors and helping their communities to recover from storms and droughts.

“The Scottish Government is committed to working with our partners across the Global South on a fair, long-term solution to the global debt crisis and supporting debt solutions that allow countries to invest in people, public services and climate resilience.”

Malawian High Commissioner to the UK His Excellency Dr Thomas Bisika said:

“Where Malawi stands now, debt relief needs to be considered seriously as the ameliorative effects of debt restructuring have been very minimal and inconsistent at best. We also need debt reforms that improve access to emergency liquidity before, during and after climate disasters.”     

Zambian High Commissioner to the UK Her Excellency Macenje Mazoka said:

“Zambia welcomes this important joint statement and the spirit of solidarity it reflects. Our experience has shown that debt justice is not only about easing immediate pressures, but about creating a fairer international system that allows countries to invest in their people, strengthen resilience, and pursue sustainable development. We look forward to working with Commonwealth partners to advance reforms that ensure debt solutions are timely, fair, and climate-responsive.”

Chief Executive of Scottish Catholic International Aid Fund Lorraine Currie said:

“Bringing diplomats, campaigners and academics together for the roundtable on debt justice was a powerful reminder that real progress begins with listening to those most affected and acting alongside them. The energy and unity in the room showed what genuine partnership can unlock. We are grateful to the Scottish Government for convening this vital conversation and for keeping debt justice high on Scottish, UK and global agendas.”

Background 

The statement was agreed earlier this week by Cabinet Secretary for Climate Action Gillian Martin, Zambian High Commissioner to the UK Her Excellency Macenje Mazoka and Malawian High Commissioner to the UK His Excellency Dr Thomas Bisika. 

Debt Justice in the Commonwealth: Glasgow statement - gov.scot