Ed Miliband urges overhaul of global finance to ease debt burden on developing nations

At the IMF and World Bank annual gatherings in Bangkok, Foreign Secretary Ed Miliband warned that the global financial order is not serving developing countries, especially regarding debt, resilience and climate challenges. He advocated a “new deal” that would see multilateral development banks leverage their resources to provide longer repayment horizons and lower-cost refinancing, creating fiscal space for struggling governments.

Miliband also called for an overhaul of the existing “common framework” for sovereign debt restructuring, criticizing its slowness and the ability of private creditors to stall negotiations, citing Ethiopia as an example. Referencing the 2005 Gleneagles summit, he reminded listeners of past debt-write-down achievements and pointed to the UK’s upcoming G20 presidency as a platform to advance these reforms. The UK’s chancellor, John Healey, will outline related G20 priorities, while the launch of a Rockefeller Foundation report will underscore the need for a surge in affordable financing. Campaigner Tim Jones stressed that any relief must also involve private lenders sharing the cost.