[GJM] Campaign for paying the Principal only

Sun Sep 24 17:14:31 MDT 2006

Surely, there is no "profit", only cash flow, in repaying principal.

Martin Hattersley
5929 - 189 St.,
EDMONTON AB CANADA T6M 2J1
Phone (780)483-5442.
jmartinh at shaw.ca
e-mail: hattersleyjm at interbaun.com
----- Original Message ----- 
From: "robert searle" <dharao4 at yahoo.co.uk>
To: <mukhtaralam2000 at yahoo.com>; "Discussion Forum for Global Justice" 
<discussion at globaljusticemovement.net>
Sent: Wednesday, September 20, 2006 2:19 AM
Subject: Re: [GJM] Campaign for paying the Principal only

> Dear All,
>
>       It is ludicrous that governments in the rich
> world seem powerless to curtail interest charged by
> banks especially when one realizes that they still can
> make profit from the principal being paid off.
> Ofcourse, this would be backed in many cases by the
> relevant collateral, or security. It should be such a
> simple thing to bring in the legislation necessary for
> this to happen.
>
> Banks could still be private commerical enterprises
> but would operate at a reduced profit than before.
> Ofcourse, a special one-off fee could also be paid for
> the credit creation process to occur.
>
>
> Regards,
>
> Robert Searle
>
>
> --- Muhammad Mukhtar Alam <mukhtaralam2000 at yahoo.com>
> wrote:
>
>> Robert and all,
>>
>>   We may initiate a campaign for paying the
>> Principal only
>>
>> robert searle <dharao4 at yahoo.co.uk> wrote:
>>
>> Dear All,
>>
>> The following may be of interest..
>>
>> R.Searle
>>
>> --- Christensen tjn
>> wrote:
>>
>> > Dear Colleagues,
>> >
>> > The following email from Steve Mandel is relevant
>> to
>> > those with an interest in odious debt.
>> >
>> > Best wishes,
>> >
>> > John
>> >
>> > ++++++
>> >
>> > Dear John Christensen,
>> >
>> > As the world bank meetings open in Singapore, I am
>> > launching a new discussion document from nef (the
>> > new economics foundation) saying that the time has
>> > come to look again at foreign debts forced wrongly
>> > on developing countries - so-called 'odious debt'
>> -
>> > and shift the spotlight onto the 'odious lenders'
>> -
>> > the bankers who made large loans to illegal
>> regimes.
>> >
>> > The nef research, Odious lending: debt relief as
>> if
>> > morals mattered, demonstrates the true scale of
>> the
>> > impact of debts that result from 'odious lending',
>> > and how that impact continues to grow until the
>> loan
>> > is cancelled. Long after 'odious debts' are
>> > technically off the books, subsequent generations
>> > are still effectively paying for them. Taking 13
>> > clear examples of odious lending, nef's new
>> > calculations reveal that amongst the worst cases:
>> >
>> > * Indonesia has already 'overpaid' in the region
>> of
>> > US$151 billion relating to odious debts - twice
>> the
>> > level of recorded debt. This means that Indonesia
>> > has made a cumulative net transfer to the North of
>> > US$138 billion to date - or 90 per cent of
>> > Indonesia's GDP.
>> > * Argentina has already 'overpaid' in the region
>> of
>> > US$77 billion relating to odious debts - 75 per
>> cent
>> > of the country's recorded debt.
>> > * Nicaragua has odious debt of over five times the
>> > country's total GDP.
>> >
>> > The case for debt cancellation on the grounds that
>> > the vast loans made to 'odious' regimes should not
>> > be enforceable under international law, is gaining
>> > momentum. But until now, no-one has tried to put a
>> > price on the repercussions of odious debt that
>> > reverberate for many decades - even after an
>> > oppressive and corrupt borrower regime may have
>> left
>> > the scene.
>> >
>> > The nef research reveals that for at least ten of
>> > these countries, their total debt results from
>> > 'odious lending'. For the ten countries identified
>> > as having 100 per cent odious debt: Indonesia,
>> > Argentina, Nigeria, Phillipines, Pakistan, Peru,
>> > Sudan, South Africa, Democratic Republic of Congo
>> > and Nicaragua, all debt servicing is
>> inappropriate.
>> > This means that they have, in fact, been
>> > 'overpaying' and are owed not just a total
>> > cancellation of all outstanding debt, but a
>> > substantial repayment, currently amounting to US
>> > $383 billion.
>> >
>> > Not only are successor governments saddled with
>> > paying off the loans - but because the borrowed
>> > money was often not put to productive use, there
>> are
>> > inadequate funds to repay interest and capital.
>> The
>> > result is a vicious circle of debt in which new
>> > loans have to be taken out by successive
>> governments
>> > to service the odious ones, effectively
>> 'laundering'
>> > the original loans. This can give a legitimate
>> cloak
>> > to debts that were originally the result of odious
>> > lending. And, as the nef research reveals, the net
>> > loss to these countries economies' often exceeds
>> the
>> > total outstanding debt.
>> >
>> > nef proposes a new process for dealing with the
>> > problem including a new independent body that
>> would
>> > assess the track record of regimes that incurred
>> the
>> > debts and declare whether it was odious or
>> > legitimate. Loan contracts entered into by
>> 'odious'
>> > regimes would then be deemed unenforceable. And,
>> for
>> > the backlog of the past, debtor countries would be
>> > able to apply to an independent arbitration panel
>> > for a debt work-out. A moratorium would be
>> declared
>> > on all debt service while the case was examined.
>> > Odious debts would be declared null and void
>> before
>> > debt service could be considered on the rest. The
>> > key components of the nef proposal are:
>> >
>> > * an internationally recognised independent body
>> to
>> > decide on the odious nature, or otherwise of
>> regimes
>> >
>> > * on a country by country basis, arbitration
>> panels
>> > consisting of representatives of: creditors to
>> > odious regimes (the 'odious lenders'), legitimate
>> > creditors, present government and civil society
>> with
>> > a mutually agreed chair to decide on debt
>> work-out,
>> > designed to leave any country no worse off than
>> they
>> > would have been if there were no odious loans.
>> >
>> > As well as relieving legitimate governments of the
>> > burden imposed on them by undemocratic
>> predecessors,
>> > this would make it much more difficult for future
>> > dictators and other corrupt regimes to raise loan
>> > finance, thus greatly strengthening the forces of
>> > democracy and justice.
>> >
>> > I attach a four-page summary, but for the full
>> > document please go here
>> >
>>
>> > .
>> >
>> > Yours,
>> >
>> > Steve Mandel
>> >
>> > > _
>> > JPBerlin - Mailbox und Politischer Provider
>> > intertax Mailingliste - Eine Mailingliste im
>> Rahmen
>> > von Attac
>> >
>> > intertax at listen.attac.de
>> > Zu Optionen und zum Austragen:
>> > http://listi.jpberlin.de/mailman/listinfo/intertax
>> > ________________________________________
>> > Eine andere Welt braucht Unterst&uuml;tzung:
>> > Bei unseren Kampagnen (www.attac.de) mit Spenden
>> > (https://www.attac.de/spenden.php)
>> > oder durch Mitgliedschaft
>> > (https://www.attac.de/mitglied.php)JPBerlin -
>> > Mailbox und Politischer Provider
>> > intertax Mailingliste - Eine Mailingliste im
>> Rahmen
>> > von Attac
>> > Zu Optionen und zum Austragen:
>> > http://listi.jpberlin.de/mailman/listinfo/intertax
>>
>>
>>
>>
>>
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