What happens when a country faces serious problems with their debt? When they have so much debt that they aren’t able to pay, or their debt originates from a dictator that borrowed the money years ago for personal gain and without the citizens’ knowledge?
Jubilee USA is working toward a comprehensive and permanent solution to debt crises that shake the international economy and harm the world’s poorest citizens. Like a bankruptcy court for governments, a Fair and Transparent Arbitration Process (FTAP) is both practical and equitable.
Read on to find out more about FTAP, what we’re working on now, and how you can get involved.
The Problem - This problem is not new, especially to poor countries that have been forced to choose between paying their debt and providing critical, but basic services to their people. Their only recourse is to beg the Paris Club to consider reducing a portion of their debt or stop paying their loans (default) and become and international pariah. Even after debt relief, many poor countries face new debt crises after taking out more loans to counteract the effects of the food, fuel, and economic crises on their populations. Countries, unlike individuals that can claim bankruptcy, have no system to turn to when their debts are unsustainable and unmanageable. Borrowing countries have little say in how their debt is dealt with, as lenders serve as witness, jury and judge during the monthly gathering of wealthy countries known as the Paris Club. The Solution - With the recent debt crises in Iceland and Greece, interest in solving these problems has become more widespread – German and Norwegian government officials have endorsed creating a system that gets at the root of unsustainable debt. Much like a bankruptcy court for countries, a Fair and Transparent Arbitration Process (FTAP) would provide a neutral platform that gives a fair hearing all lenders and borrowers and treats them all equitably.
Learn more about FTAP from Jubilee USA and our global partners
Keep updated with Jubilee USA's Policy, Grassroots, and Media work around FTAP
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