INDEBTEDNESS

At the end of every seven years thou shalt make a release.

And this is the manner of the release: Every creditor that lendeth unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother; because it is called the LORD'S release.

Deuteronomy 15 verses 1 & 2

The Jubilee campaign in 2000 for the cancellation of the debt of the poorest nations was inspired by the debt cancellation provisions of the Old Testament. Every seven years debts were to be cancelled, the land to remain fallow (to rest) and people given back their ancestral land. Every seven times seven years (the fiftieth year) there was a special celebration the Jubilee.

"And ye shall hallow the fiftieth year, and proclaim liberty throughout all the land unto all the inhabitants thereof: it shall be a jubilee unto you;" Leviticus 25 verse 10

The Old Testament banned the use of usury – charging interest on loans – a practice that is still applied under Islamic Shariah law. While such a ban would be unworkable in modern financial markets it is instructive to ask why such a ban was put in place. One explanation is that, in small close-knit communities, it was not appropriate for one person (the lender) to insulate themselves from the inevitable risks (including bad harvests, wars, etc) that could affect that community. The correct approach is for everyone to have an equity stake in the activities of the community.

Ethical questions that can be asked of financial institutions and governments:

• At the international level
  
  Do policies towards international debt relief ensure that developing countries have enough to provide basic education and health services to its population?
  
  Are lending policies geared to encourage personal and social development rather than funding armaments or regimes with poor human rights records ?
  
• At the local level
  
  Do the poorest members of our community have fair access to credit at reasonable rates ?
  For a discussion of this in respect of one company see the EIAG Press Release on Provident Financial June 2001 (Details – Click left on Publications and Church of England)
  
• Are banks exercising selection in the types of business in which they invest ?
  Co-operative Bank is a retail bank with a clearly stated ethical policy. Similarly also is Triodos Bank (see Links) although they do not take retail deposits.