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TRUTH ABOUT DEBT GET ACTIVE RESOURCES PRESS
 

The Concept of Odious Debt

Great Britain v. Costa Rica (1923) when money was put to use for illegitimate purposes with full knowledge of the lending institution; the resulting debt was annulled.

  1. Creditors made loans irresponsibly. When the price of oil increased dramatically in the early 1970s, banks were suddenly awash with the petrodollars the oil-producing nations were depositing. In an effort to have those petrodollars earn interest, creditors pushed loans on developing countries.
  2. During the Cold War era, loans were often made more for ideological and political reasons than for reasons of assisting development. Dictatorial and corrupt governments often had no problem obtaining loans, as long as they were anti-Communist.
  3. Creditors have often continued to extend loans to countries even when they knew that corrupt government leaders were siphoning off the money. Jubilee USA Network believes it is unjust for the South to continue paying these debts as the majority of the population cannot meet even their most basic needs.

 

 

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