Download Who Profits from the Debt and Debt Crisis?

Who Profits from the Debt and
Debt Crisis?
Conference on Alternative Solutions to the
Debt Crisis
Brussels, Belgium March 7, 2014
LENDERS
Commercial Banks, International Financial
Institutions, Buyers of bonds, Governments
Who make money from the interest on the loans – especially
on non-concessional and only moderately concessional loans
CORPORATIONS
Whose services are contracted and/or products are
bought for projects financed by loans.
CORPORATIONS
Who receive loans with public guarantees, OR whose business
risks are publicly guaranteed
These public guarantees are counted as “contingent liabilities”
which then become debt when the guarantees are called on
CORPORATIONS
Whose businesses are enhanced because of the projects
TRADERS and BUYERS
of DEBT PAPERS in SECONDARY MARKETS
Who buy public debt papers at a discount or low rate and
make money from reselling the papers or collecting the
face value from the debtor (includes “vulture funds”)
PRIVATE EQUITY FUNDS
Who act as financial intermediaries in the investment of
public funds for development, issue various lending and
investment instruments and have a share in the profits
Banks and Corporations
Who have been bailed out from their debt crisis – from
predatory and reckless lending and investments -using public funds
GOVERNMENT OFFICIALS
Who use loan-financed projects in patronage politics
Who receive bribes and commissions in exchange for
using their influence and authority to get loan-financed
projects and loan contracts approved; Who steal
money from loan-financed projects
INVESTORS, CORPORATIONS and
INDUSTRIES
(International and National)
who benefit from the neoliberal policies being
pushed on borrowing countries using
LOANS, GOOD CREDIT STANDING and ACESS to
DEBT RELIEF as leverage
Austerity Measures
Tight Fiscal and Monetary Policies
Privatization, Public-Private Partnerships
Deregulation of Industries
Financial Liberalization
Trade Liberalization