Debt forgiveness could ease eurozone crisis

A group of Christian financial advisers has called upon political leaders to consider writing off the debts of faltering eurozone economies.

Arwyn Bailey, the Association of Christian Financial Advisers (ACFA), said debt forgiveness was one way to ease the eurozone debt crisis and prevent a possible collapse of the banking system.

He likened the plight of Greece, Spain, Italy and Portugal to impoverished third world countries saddled by debt.

“Few could ever have predicted that the same problem of national debt would become a crisis in the rich nations of European continent, creating an ever-increasing reliance upon developing nations such as India and China for a continuing line of credit,” he said.

“As far as the eurocentric countries such as Greece, Spain, Italy and Portugal are concerned, no one has yet taken up the mantle of demanding debt forgiveness, despite the economies of these nations stumbling on in a similarly unsustainable position to a third world country run by a dictator.”

Mr Bailey qualified his call for debt forgiveness with the need for indebted countries to show “contrition and repentance”.

Whilst the concept of debt forgiveness could be seen as “outdated”, he warned that the alternative could be a “rapid collapse” of the banking systems in Europe.

“It would involve some sacrificing of profit, and the humility to seek – and live with – forgiveness,” he said.

“In order to complete the circle, it would also require a significant change by politicians, and a determination for it to be truly different this time by not being so eager to live with so much complexity and borrowed money.

“This concept may not win many votes, but for the poor and dispossessed who are suffering the most within this economic crisis, humble debt forgiveness is perhaps the only meaningful resolution that can offer any real hope for the future.”