Bangladesh needs Unconditional Cancellation of External Debt
In 2007, Bangladesh had to pay USD 1551.3 million for external debt servicing which is 18% of total government expenditure. During the same year, public spending on education and health were 16.5% and 7.4% of total expending respectively. The country has spent 15.65% and 5.89% of its revenue expenditure on education and health respectively in the year 2007 while she had to pay almost 25% of government revenue for external debt servicing. Overall external debt servicing rose from USD 892.7 million in 2001 to USD 1551.3 million in 2007 showing almost 65% increase during the last 7 years.
Public Spending on Essential Services is crucial to achieving MDG targets for Bangladesh. Bangladesh cannot afford to pay on average USD1060 million a year to foreign creditors. Even though the country is making some progress with regard to the implementation of the MDGs, it is still home to 70 million people living in poverty. It has the highest incidence of poverty in South Asia.
In fact, Bangladesh can’t afford to pay single dollar in debt service. Debt Cost Too Much to Bangladeshi people in general and poor & marginalised in particular. People need healthy and prosperous life that requires increased government spending on basic services such as health, education, water, sanitation etc.
Bangladesh needs USD 7.5 billion in external budget support each year to achieve the MDGs targets in time. It is about four times the amount of aid and concessional loans currently provided by foreign donors and creditors. At this Juncture, Bangladesh can no longer afford to pay a single dollar for debt servicing. Because …….. Every Dollar Paid in Debt Service is A Dollar Lost for The MDGs.
Breaking a Silence of Ocean, Bringing the hands together;
Join in the Debt Cancellation Campaign in Eve of Next G8 Summit