Norway launches ‘debt audit’
Norwegian government makes a historic announcement
The principle that lenders are responsible for the debts they create, particularly in the developing world, has been highlighted in a historic announcement by the Norwegian government.
The government stated last week that it will make an assessment of the legitimacy of the debt of developing countries to Norway. It is the first time a government has ever carried out a ‘creditor’s debt audit’.
Campaigners in Britain have called on the Liberal Democrats to hold to their pledge and follow suit.
Gina Ekholt, director of the Norwegian Coalition for Debt Cancellation, said: ‘This is a historical day! Not only for debt campaigners who have been fighting for this for years, but also for the people across the world that are suffering from unpayable and illegitimate debt burdens’.
She added: ‘This is an important tool to promote responsible lending and to take responsibility for past loans. We hope that other creditors will be inspired by Norway’s debt audit.’
The audit will be launched this autumn and followed up with new and stronger guidelines for responsible lending.
Tim Jones, policy officer at Jubilee Debt Campaign in the United Kingdom, said: ‘Norway is yet again setting a fantastic precedent that lenders are responsible for the debts they create. The Liberal Democrats have similarly pledged to carry out an audit into debts owed to the UK. But Vince Cable has refused to do so, despite being in charge of the department responsible. People in Iraq, Indonesia and Egypt are today repaying loans, to the UK government, given to past dictators for military equipment.’
In 2006 the government announced that they would cancel debts for seven countries because the original loans had been a ‘development policy failure.’
The Norwegian Coalition for Debt Cancellation has done its own investigation of debts owed to Norway. The research reveals that a part of Indonesia’s current debt to Norway is clearly illegitimate. The loans were given to the oppressive government of Suharto, the general who ran one of the most corrupt regimes in history.
Norwegian initiatives have led to the establishment of international principles for responsible lending and borrowing in the United Nations Conference on Trade and Development (UNCTAD). The principles will be applied in the Norwegian debt audit. In April, the UK government tried unsuccessfully to stop UNCTAD working on responsible lending and borrowing principles.
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