Bilateral Debt

Government to government debt, or bilateral debt, is largely made up of debt to aid agencies and export credit agencies. As the World Bank and IMF are preferred creditors and therefore get paid back first, debts owed to other creditors, including governments, are often in arrears. Whereas commercial creditors have written off debt owed by the poorest countries, bilateral creditors have tied debt relief to successful completion of the multilateral debt relief programme.

Section Articles

Canada's position on Third World debt - September 2003

This factsheet summarizes the Government of Canada's position on debt cancellation and documents actions to date. For analysis and critique of this position, see our other documents in the Issues-Debt Section.

G8 and debt

The on-going debt crisis of developing countries is integral to the perpetuation of an unjust economic system, one that concentrates wealth and power in the hands of a few. EVERY SINGLE DAY in 1999, $128 million was transferred from the poorest countries to the richest in debt repayments. For every one dollar in aid to developing countries, more than seven dollars comes back to rich countries in the form of debt servicing.

Canada's Exposure to Foreign Countries - March 31, 2000

This chart, prepared by Finance Canada, shows the amount of debt owed to Canada from developing countries. 2000 is the last year that full information was made available. Export Development Canada stopped releasing this data after adopting a disclosure policy in 2001. Export Development Canada is Canada's largest bilateral creditor.

ECAs and debt

Debt aspects related to export credit agencies : The cancellation of Third World debt has been a rallying cry of social movements for years, gaining in volume and numbers in 2000 as a result of the global Jubilee movement. Much attention has been focused on the debts owed by poor countries to the World Bank and the International Monetary Fund. However, export credit agencies collectively own more debt of Third World countries than the World Bank and the IMF combined.

Press Responses : Thursday, September 6, 2001

EDC's new disclosure policy keeps loan figures out of report (Ottawa Citizen)

Letter to Finance Minister Martin on Debt Moratorium - February 8, 2001

On behalf of the Canadian Ecumenical Jubilee Initiative and the Halifax Initiative Coalition, we wish to congratulate you on your decision to place a moratorium on the debt servicing requirements of eleven of the world's most heavily indebted poor countries.