Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert who tracked or participated in G20 meetings since 2010, releases the following statement on the G20 finance ministers meeting:

“Developing countries lack the resources to confront economic crises and food shortages,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “The G20 must act quickly to prevent a recession and address food and debt crises."

The World Bank warns that due to the impacts of the pandemic and the Ukraine war, average incomes in 40% of developing countries will remain below 2019 levels.

"Rising interest rates mean developing countries have higher debt payments just when they need to invest more to protect their people,” added LeCompte. “Countries need debt relief, not more debt."

In a statement addressed to G7 leaders, the Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) warned about the deteriorating debt situation on the continent.

“Worsening global conditions and rising interest rates will push more African countries to make impossible choices between saving lives and jobs or paying creditors,” stated Bishop Sithembele Siphuka, First Vice-President of SECAM and Commission Chair.

The G7 launched an infrastructure plan that plans to tackle developing countries taking on too much debt. Pledging $600 billion in developing country infrastructure by 2027, the terms and quality of projects under the Global Partnership for Infrastructure and Investment seek to keep debt levels in check.

"The G7 plan to invest in countries from Angola to the Ivory Coast means less debt and positive economic returns for developed and developing countries,” shared LeCompte. "The G7's investment in sustainable infrastructure is good news for developing countries."

Leaders focused on the global food crisis pledging an additional $4.5 billion to protect the vulnerable from hunger and malnutrition. The war in Ukraine worsened food shortages and more than 193 million people face hunger.

On climate, the G7 announced the creation of a “Climate Club." The club or group of countries would focus on actions to meet climate goals. The G7 renewed pledges to deliver $100 billion in annual funds to address climate change through 2025.

"The Ukraine war, pandemic and climate crisis are a triple threat that developing countries don't have the resources to combat,” expressed LeCompte.

Read the full G7 communiqué here. 

Read the African Catholic Bishops' statement to G7 leaders here.

Read Jubilee USA's press release on the New York Taxpayer and International Debt Crises Protection Act here.

Read Jubilee USA's press release on the G7 finance ministers meeting here.

On Sunday, G7 presidents and prime ministers begin their three-day summit under the German Presidency. Meeting at the Schloss Elmau resort, the leaders deliberate on the pandemic, Ukraine war, food shortages, vaccines and climate issues.

“We are dealing with crisis on top of global crisis,” shared Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert. “Most countries were struggling to get through the pandemic and couldn't confront the challenges of climate change. Now the Ukraine war is creating a growing food crisis for many of those same countries.”

In a petition to G7 leaders, more than 50 African religious leaders asked for relief measures for the continent struggling with food, climate and health crises. Jubilee USA worked with religious leaders in Africa on the statement. Signers of the statement include Bishops and representatives from the Catholic Symposium of Episcopal Conferences of Africa and Madagascar, Caritas Africa, the Church of Pentecost in Ghana and the All Africa Conference of Churches. In addition to other measures, the religious leaders requested “debt relief initiatives for African countries, and . . . measures, including domestic legislation, to compel full public and private creditor participation and transparency.”

Legislation currently before New York State lawmakers requires private creditors to provide debt relief at the same level that governments and public institutions provide to struggling countries. More than 60% of developing country debt is in private sector hands.

“Inflation, economic shocks and food shortages are all tied to the debt crises developing countries are facing,” stated LeCompte. “The single most meaningful commitment the G7 could make is to support legislation in G7 countries that ensures private and commercial lenders contribute to debt relief."

While debt and inflation will be key focuses of the upcoming meetings, leaders are set to endorse a global initiative for food security and a plan to address climate change.

“G7 countries hold about $400 billion in emergency pandemic currency that could be given to development banks and used to tackle climate and food challenges,” noted LeCompte.

The International Monetary Fund created $650 billion in emergency currency known as Special Drawing Rights for coronavirus relief last year. The majority of these funds were received by developed countries who can donate the funds to developing countries. Several of these wealthy countries pledged $60 billion of their Special Drawing Rights to fund IMF cheap loans to developing countries.

Read the African religious leaders' petition to G7 leaders here. 

Read Jubilee USA's press release on the New York Taxpayer and International Debt Crises Protection Act here. 

Read Jubilee USA's press release on the G7 finance ministers meeting here.

A New York State Assembly bill requires private creditors to join debt relief initiatives for developing nations struggling with debt crises, the pandemic and Ukraine war-related economic shocks. The New York Taxpayer and International Debt Crises Protection Act, was introduced in May by Assemblymember Patricia Fahy, Chair of the Banks Committee. 

“This legislation will help resolve debt in developing countries more easily, many of whom are reeling from the effects of the COVID-19 pandemic and Ukraine invasion,” said Fahy. “I’m proud to introduce this legislation and require that private creditors join in debt relief funding deals for developing countries to resolve financial and debt crises. While you might not know it, most of the world’s private debt is arbitrated here in New York, and this legislation will provide much needed debt relief across the board.”

Over 50% of the world's debt held by private creditors is contracted under New York State law. Fahy's bill ensures private creditors participate in debt relief initiatives at the same level as the US government, other governments and other creditors.

In the first year of the pandemic, developing country debt rose by five times the average increase of previous years. Under the leadership of the Trump and Biden Administrations, G20 countries established a process that allows up to 73 of the world’s poorest countries to obtain debt relief from all creditors. Although the G20 and US government were clear that private creditors should provide debt relief, private creditors have not announced any debt relief agreements to date.

Treasury Secretary Janet Yellen and the IMF consider pandemic-related economic disruptions are partly responsible for record-high inflation in the US. Supporters of the legislation assert that US and New York residents benefit from the bill.

“People living in New York and across the United States face supply shocks and health risks because of crises in developing countries,” said Eric LeCompte, Executive Director of the religious development coalition Jubilee USA Network. LeCompte's bipartisan organization won numerous global debt relief agreements over the group's 25 year history. “Other countries whose courts settle debt disputes should follow Assemblymember Fahy’s leadership and implement similar critical initiatives.”

While the majority of the world's private sector and bank debt is contracted under New York law, more than 40% is contracted under United Kingdom laws. The remaining portion is mostly held by Germany, France, Japan, Singapore, Belgium and Australia.

"This New York State bill is modeled after highly successful legislation in the UK, to ensure that taxpayer money sent to feed the hungry is not diverted to pay creditors," said Georgetown Law professor Anna Gelpern, who participated in discussions on this legislation. "The new law would be an important addition to the crisis management toolkit at a time when debts in countries are at critical levels, and governments are struggling to meet their citizens' basic human needs. A transparent, coordinated, equitable debt resolution process is essential to get us through this period." 

View the NY Taxpayer and International Debt Crisis Protection Act and bill memo here.

Read Jubilee USA's press release on the introduction of the bill here.