RELEASE G7 A FLEXIBLE MECHANISM FOR DEBT REDUCTION AND SUSTAINABLE DEVELOPMENT

02.04.2024

Investments for sustainable growth can only yield the desired outcomes if countries are not burdened by public debt. Within the framework of the Mattei Plan Steering Committee, LINK 2007 has presented to the Office of the Prime Minister the RELEASE G7 proposal, a flexible mechanism for debt reduction and sustainable development aimed at revitalizing international cooperation. This initiative presents an opportunity for the international community and seamlessly aligns with the Mattei Plan for Africa.

The proposal entails converting a portion of the public debt of select African countries into local counterpart funds for co-investment within the Mattei Plan framework in each involved country. With its G7 Presidency, Italy plays a pivotal role in promoting initiatives of such significance to ensure social, economic, financial, and environmental sustainability.

Funding for Sustainable Development cooperation, already challenging, has been further compromised by global military expenditures and the effects of wars. However, with its G7 Presidency in 2024 and the Mattei Plan, Italy can reinvigorate investment support aligned with the Sustainable Development Goals (SDGs), thus facilitating economic growth and sustainable employment, particularly in Africa.

Through this partial debt conversion, G7 countries along with their private banks, major creditors alongside China and other G20 countries, must promote credible SDG implementation. The combination of partial debt cancellation and conversion into investments is crucial to avoid widespread defaults and foster sustainable economic growth.

The RELEASE G7 initiative proposes a flexible debt conversion with the aim of becoming an ongoing endeavor, ideally in collaboration with the G7 and G20.

Find the RELEASE G7 proposal HERE