Grassroots Conference Call April 14th, 2009 8:00 pm-9:00 pm east coast time
Sister Rose Mary Sullivan-Congregation of Notre Dame CT
Kristin Sundell-Jubilee USA
Carly Pildis- Jubilee USA
Sister Hope in DC
Nancy Johns- Portland, OR Westminster Presbyterian Church
Hayley Hathaway-Jubilee USA
Candace Young-Schult -Jubilee San Diego
Alex Viard from Haitian congress in Chicago
Diana Bohn from CA- Bay area...
Ed Cooke-Miami, FL
Seydina Senghor-NY
Tejan Muata-AFSC
Lori Reed-from AFSC in St.Louis
Policy update:
HAITI:
This morning, at the Haiti donors conference, organized by the Inter-American Development Bank (IDB) Secretary of State Hilary Clinton, announced that the US will be covering all of Haiti's debt payments to the World Bank this year. Haiti is supposed to reach completion point this June-meaning they are to receive cancellation this year. Thank you so to much to all of you who have work for this the last four or more years.
We need to continue to be vigilant; the fact that the US said they would do this has a lot to do with the pressure from grassroots and from congress. Here is how the funds break down:
A total of $50 mil:
$20 mill for roads and infrastructure
$20 mill to ease the debt load
$15 mill in food aid.
They have certainly gotten a lot of messages from grassroots and of course a couple letters from congress. It really feels like we are 99% of the way there. We may still need to get an appropriation from congress. Before the agreement Canada was paying some of Haiti's debt payments and the IDB was paying 55%. They still owe a small amount to china. Other than that Haiti will not be making any debt payments this year.
VULTURE FUNDS:
-new case against Democratic Republic of Congo (DRC)
-The firm tried to seize embassy property because the DRC had missed payments on a loan. However, they were not successful in this attempt.
-The loan dates back to the Mobutu years
-they are in contempt of court in DC
-The DRC will start paying 5,000 a week and it will double every four weeks.
-They could end up paying up to 80,000 a week.
-Rep. Waters (D) introduced last congress the Stop Vultures Act to prevent Vultures Funds from using U.S courts to sue impoverished countries
-would allow collection of 6% interest but can't collect 200% interest. This cap would make these kind of transactions no longer profitable enough for a hedge fund to bother to participate in.
-Will take a lot of work from all of you and us to educate your member of Congress (MOC) about this issue.
-Rep Spencer Bachus (R) from Alabama is going to be co-sponsoring the bill with Rep. Maxine Waters (D-CA) which is great news he is the first R. Many Republicans look to him on these issues.
-The bill may have more potential for bi-partisan support
-we will get more info out and we are trying to figure out what we can do, we hope that the media will cover it.
Questions:
Q: In what court is this suit being carried out?
A: Washington DC district court...
Q: The bill would not allow these suits to be in our courts or just keep it at 6 percent?
A: Keeps at 6% which would keep them out because they are not interested in 6 percent. There is also pursuit of similar legislation in the UK; the US, UK and France are the places where these are taking place-we are working internationally to close off access to vulture funds.
Kristin example of Vulture Funds: A loan was taken out for a dam to be built. The country did not make payments on this debt...then he fell from power in the late 90s and had not been making payments and the money was owed to a company in Serbia in Bosnia. The company that held the debt was not equipped to chase the debt so they sold it to FHemispheres. It was sold for a cheap price. For example: it was a dollar debt, but I sell it for 5 cents, and then they try to collect for 2 dollars.
Q: Letter to the editor and Haiti info will be on the website?
A: linked to reintroduction of the letter would be a good time to write that letter
JUBILEE ACT:
House side
-We are going back and forth with Rep. Barney Frank's (D-MA) staff. They want more specific language about what it means for the US to support a framework for responsible lending.
-We are working to make the language more specific. We need Frank because he's committee chair (House Financial Services Committee) that will pass the bill and move it to the floor of the whole house... the bill will be stronger after we do this...
-We are referring to the United Nations Commission on Trade and Development
-they have a non-binding responsible lending framework. The idea would be to have the US officially support this process and sign onto it.
Senate side:
Negotiating with Treasury for language for the bill. There is still no Assistant Secretary at the Treasury Department. This is the person that we would be working with. No one has been confirmed by congress yet. Lael Brainard has been nominated.
- She has met with us in the past and we have established a relationship with her
-Once she is confirmed she will be the person that we will deliver the hearts to. We could see an introduction of the Jubilee Act in the Senate in early June.
What's on Your Heart:
-Waiting a bit longer to deliver hearts so that someone is in place- this will be Lael Brainard
-We got over 9,300 hearts!
4th Annual Grassroots Conference:
-Will be in Oklahoma, working with local bishops and people on the ground filled with exciting speakers and we hope that after the conference folks with be ready to lobby and stand up.
-We will remember that last year Senator Coburn (R) of OK was the only Senator to put a block on the Jubilee Act.
Letters to the Editor: we have had nine published and we are so excited about this... see our blog for compiled list of letters to the editor.
IMF GOLDS SALES: HAYLEY HATHAWAY
-Commitment by G-20 to give a trillion dollars to help stop crisis. Most of the money goes to the International Monetary Fund. The IMF is an institution that is not so popular and up to about a year ago was almost extinct-thanks to us and other activists. There was a serious lack of popularity and they did not have that much money but the crises has allowed it to take out a new lease on life that means we have an increased roll in making sure its used in a fair and just way.
-It has been said that the money will be used to help the poorest countries.
-part of this money will come through the IMF selling gold.
-The IMF has the 3rd largest gold reserve in the world, worth trillions of dollars
-Long time activists say: the IMF is sitting on a pot of gold that should be used for debt cancellation.
-When no one was borrowing from the IMF it said ok we will sell gold and use it for ourselves. now they have more money then ever and they still want to sell the gold for themselves but we say they must use a portion of it for debt cancellation.
-At the G-20 it was decided: some gold sales $ can be used for the IMF and some must be for poor countries.
-We think all the gold sales should go to poor countries
-The money the IMF is saying is going to help poor countries is going to be in the form of loans not grants through the IMF loan program-same program that the IMF has used to attach horrible conditions like wage caps, privatizing social services
- We don't want a jubilee act of 2020! We have to make sure that this money is not in the form of loans. Currently 15 countries are in danger of falling into debt distress
- on the edge of falling back into debt and jubilee takes this seriously.
-Grants instead of loans would prevent future debt problems.
-In DC we are meeting with Congress educating members and their staff
-In order for the IMF to get all this money they need congressional approval.
-Ten years ago- was the last time the IMF was on the floor in congress so this is a key time! We say no blank check for the IMF.
-No money without reforms and money for debt cancellation.. Working with our grassroots in CT. Gary Hart recently had an lte published.
-CT work is important because Senator Dodd (D) is most important, has most authority asking him as the Banking Committee Chairman to be a leader on this issue.
Questions:
Q: Where does the money come from-the trillion dollars for the IMF? Isn’t it like an undeserved bonus for poor performance?
A: 100 billion from US 100 billion is from China.
Hayley: gold sales provide free money
-US tax payers don't have to front the bill
Q: Does Obama realize what he has done in terms of agreeing to this?
A: The IMF is good at making people think it has made changes because they say this a lot. So the congress and President buy into this but it’s not actually correct...
Diana-bay area... action items
I can do calls and emails in the CA area... re the gold sales.
Nancy Johns in Portland: ecumenical council here is having its 40th lecture archbishop Desmond Tutu will be the speaker Monday, May 4th.
Ed Cooke: NETWORK... did ask for a copy of the south fl members numbers and emails. Could be done with CT, OK, ATL.
