Statement of Neil Watkins, Executive Director, Jubilee USA Network, in response to the G-20 communique

April 2, 2009

CONTACT: Neil Watkins, Jubilee USA, 202-783-0129; cell - 202-421-1023

“We welcome the recognition by the G-20 today that the current crisis has had a disproportionate impact on the most vulnerable people in the world’s poorest countries, and in particular, that the G-20 recognized their ‘collective responsibility’ to mitigate the social impact of the crisis.
 
“While the large sums made available to developing nations by the G-20 are urgently needed, the IMF should not be given a blank check.  Meaningful reform of IMF conditionality policies is needed to ensure the IMF does not repeat the mistakes of its past lending.

“We are also concerned that all the new resources for developing countries announced by the G-20 today come in the form of loans, rather than grants or debt relief. Proposals agreed by the G-20 could create upwards of $1 trillion in new debt. Poor nations are being saddled with crushing new debt to pay for a crisis they did not create.
 
“The G-20 have rightly called on the IMF to devote some of the proceeds from gold sales to support the poorest countries, but the proposal needs significant improvement before the IMF spring meetings later this month in Washington. IMF gold sales should be expanded and some proceeds from the sale should be used for debt relief and grants – not to further indebt some of the world’s poorest nations.

“The US Congress must approve the sale of IMF gold and must authorize new resources for the IMF. Jubilee USA Network will continue its campaign for meaningful IMF reform and expanded IMF gold sales for debt cancellation and grants in Congress and at the upcoming Spring meetings of the IMF/World Bank.”