The Jubilee Act for Responsible Lending and Expanded Debt Cancellation of 2007 (HR 2634/S2166) would expand eligibility for debt cancellation while prohibiting harmful economic and policy conditions such as user fees for health care and education, measures that would increase the cost of clean drinking water or compromise workers’ rights, and requirements that would constrain government spending on health care and education. 

The countries that stand to benefit from the Jubilee Act include all of the countries eligible only for the International Development Assistance (IDA) program from the World Bank.

Forty-three of these countries are already potentially eligible for debt cancellation through the International Monetary Fund (IMF)’s Heavily Indebted Poor Country (HIPC) program.  Twenty-two of these countries have already received close to 100 percent cancellation of their debts to the IMF, World Bank and regional development banks. But for 21 of these countries, debt cancellation is still pending because they are still struggling to comply with onerous economic policy conditions imposed by the IMF, because they have not yet met the entry requirements, or because they have opted out of participation in the program. 

The Jubilee Act would expand eligibility for debt cancellation to an additional 24 countries, not currently eligible for HIPC. Nine of these would receive immediate debt cancellation under the terms of the Act, while for an additional 15, the Act would provide a positive incentive to meet the human rights, budget transparency and public financial management standards laid out in the legislation.

CATEGORY 1: COUNTRIES ELIGIBLE FOR THE IMF'S HIPC PROGRAM

A) Countries that have reached “completion point” in the HIPC program and have already received substantial debt cancellation from the IMF, World Bank, African Development Bank, and Inter-American Development Bank
The following countries would not receive further debt cancellation as a result of the Jubilee Act. However, they would benefit from provisions calling for an international framework for transparent, responsible lending, a legal framework to curb the predatory actions of “vulture funds,” and a U.S. audit of debts resulting from odious lending practices: Benin; Bolivia; Burkina Faso; Cameroon; Ethiopia; The Gambia; Ghana; Guyana; Honduras; Madagascar; Malawi; Mali; Mauritania; Mozambique; Nicaragua; Niger; Rwanda; São Tomé Príncipe; Senegal; Sierra Leone; Tanzania; Uganda; Zambia 

B) Countries at “Decision Point” in the HIPC Program
By prohibiting the conditioning of debt cancellation on the implementation of harmful economic policies, the Jubilee Act could expedite debt cancellation for these countries if they meet basic requirements around budget transparency and public financial management: Afghanistan; Burundi; Central African Republic; Chad; Democratic Republic of the Congo; Republic of Congo;  Guinea; Guinea-Bissau; Haiti

C) Countries that are pre “Decision Point” in the HIPC Program
A number of these countries, such as Sudan and Somalia, clearly fall far short of the requirements to access debt cancellation under the HIPC program.  For the others, the Jubilee Act could expedite debt cancellation if they meet basic requirements around budget transparency and public financial management:  Comoros; Côte d’Ivoire; Eritrea; Liberia; Nepal; Somalia; Sudan; Togo

D) Countries that Qualify for HIPC, but Have Opted Out
These are countries that qualify for HIPC, but have opted not to enter the program provided they meet the human rights and financial management standards in the Jubilee Act, the bill could expedite debt cancellation for these countries if and when they choose to enter the program: Bhutan; Laos; Sri Lanka

CATEGORY 2: COUNTRIES THAT ARE NOT ELIGIBLE FOR HIPC

A) Countries that do not qualify for HIPC, but meet the Poverty, Human Rights and Financial Management Standards of the Jubilee Act.
The Jubilee Act would qualify these additional countries for immediate debt cancellation: Cape Verde; Georgia; Kenya; Lesotho; Moldova; Mongolia; Samoa; Vanuatu; Vietnam

B) Countries that do not qualify for HIPC and meet the poverty standards in the Jubilee act, but do not meet the human rights and financial management standards of the Jubilee Act.
The Jubilee Act would provide a positive incentive for these additional countries to improve their human rights and financial management practices: Angola; Bangladesh; Burma; Cambodia; Djibouti; Kiribati; Kyrgyz Republic; Maldives; Nigeria; Solomon Islands; Tajikistan; Timor-Leste; Tonga; Republic of Yemen; Zimbabwe

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