African Catholic bishops, representing 23 countries, issued a statement to G7 leaders to take action on debt crises, development bank reform and greater aid for the continent hit by multiple crises. Finance ministers and central bank governors of the group meet this week, May 11th through 13th. Japan will host G7 ministers and presidents in Hiroshima on May 19th - 21st. 

The bishops raised Pope Francis’ call for effective and reliable processes to alleviate unpayable debts and advocated that private creditors participate in debt relief.

“The G7 include the major debt issuance jurisdictions that need to coordinate domestic legal reforms to deter [private] creditor litigation against countries renegotiating debts,” said the bishops. “Prompt passage of the New York Taxpayer and International Debt Crises Protection Act will do that for the large share of debt issued in that jurisdiction, and offers a simple and effective model other G7 countries can follow.”

New York State law governs more than 52% of contracts held by private creditors. Legislation pending in the state legislature and introduced by Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy would bring private creditors into international debt reduction agreements.

To prevent future debt crises, the faith leaders asked for greater use of debt contracts that increase risk-sharing between the borrowers and creditors, in the context of all types of lending.

African bishops commented on proposals that could expand multilateral development bank lending, currently under consideration by the G20. Since last year, shareholders led by the US and other G7 countries led a request for the World Bank to “evolve” through changes in its mission, operations and finances.

“[W]e approach with caution the intention to add new missions when the old ones – primarily poverty reduction and human development – remain so far from being fulfilled,” added the faith leaders. “Without an extremely bold injection of resources, such additions can only come at the expense of existing poverty reduction and development priorities in the places where they are most pressing.”

They also called for more African participation in the decisions on World Bank future.

The high-level religious leaders referred to the issuance of $650 in emergency liquidity currency – Special Drawing Rights – in 2021. More than $400 billion SDRs went to developed countries and only $33 billion to Africa. The IMF has two lending facilities that can receive SDR contributions to finance loans to developing countries.

“It is. . . essential to rethink Special Drawing Rights (SDRs) as an instrument of finance, and rechannel a significant portion of those held by wealthy countries to Africa,” stated the bishops.

The African Development Bank put forward a proposal for advanced economies’ SDR contributions to fund lending in the region, which the G7 currently considers.

“Africa's religious leaders know poverty in Africa because they lead so many major social services across the continent to alleviate poverty,” said Eric LeCompte, Executive Director of Jubilee USA Network, which supports Africa's Catholic Bishops in their advocacy. "Africa's religious leaders are positioned to explain to the G7 the need to address Africa's multiple crises.”

Find the African Catholic Bishops' Statement to the G7 here.

Since you live in New York, I write to ask for your help in passing the most significant debt relief measure in the last 25 years. Today is the 3rd day that religious leaders, unions and constituents from across New York are meeting with your New York Assemblymembers and Senators to pass the New York Taxpayer and International Debt Crises Protection Act (A2970, S4747). 

Because New York is the world's financial capital, most of the world's private debt is governed by New York law. Our Jubilee legislation will win relief, help stop economic shocks and protect New York taxpayers, consumers and our pensions.

Please write your Senator and Assemblymember now and urge them to co-sponsor our Jubilee New York Taxpayer and International Debt Crises Protection Act (A2970, S4747). Tell your Senator and Assemblymember that all of New York's biggest unions and major religious groups, the United Nations and the world's most prominent development organizations want this legislation passed by June 1st. Tell your Senator and Assemblymember that the legislation will relieve the debts of countries dealing with the pandemic and food crises. Tell your Senator and Assemblymember the legislation immediately stops predatory vulture funds and that the legislation represents the most powerful and comprehensive solution to deal with global debt and the economic shocks that are faced in New York.

The bill, introduced by Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy, brings private creditors into debt relief deals at the same level as the US government, other governments and creditors. Because 60% of developing country debt is held by private creditors, this is crucial to lower the debt of developing countries. More than half of those private contracts are signed under New York law.

Those are countries the US trades with, so addressing debt crises quickly helps lower inflation. The bill also prevents the US contribution to debt relief deals, paid by taxpayers, from bailing out private creditors. As debt crises in developing countries shorten, the law supports pension investments that depend on their economies’ performance.

Today, advocates from all across the state gather in Albany for an Advocacy Day to ask their representatives to pass this critical legislation now. Call and add your voice to theirs.

Major unions, churches, development and environmental advocacy organizations, as well as global debt partners, support this legislation. Join them and help us move your representative in the New York State Assembly and Senate to get this legislation across the finish line by June 1st.

The United Nations Expert on Foreign Debt and Human Rights issued a letter to the entire New York State Legislature, underscoring how important the New York Taxpayer and International Debt Crises Protection Act is to the protection of human rights worldwide.

With your support, we can deliver on the Jubilee promise.

Gratefully,

Aldo Caliari
Senior Director of Policy and Campaigns
Jubilee USA Network
[email protected]
www.jubileeusa.org/support-us

    

Jubilee USA Network
110 Maryland Ave. NE, Ste. 210 - Washington, DC 20002
(202) 783-3566 - [email protected] 

Jubilee USA Network
110 Maryland Ave. NE, Ste. 210 - Washington, DC 20002
(202) 783-3566 - [email protected] 

G20 finance ministers conclude their meetings during the Spring IMF and World Bank Meetings. The ministers focused on the pandemic, Ukraine war and inflation shocks to the global economy, debt vulnerabilities in developing countries, food insecurity and the climate crises. 

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

"The G20 is focused on a growing global debt crisis.

"Multiple crises are taking a heavy toll on the global economy.

"In developing countries, we lost decades of development and we are dealing with growing crises on poverty, food and climate.

"The G20 is taking steps to increase lending from development banks.

"$4 trillion annually is what developing countries need and increasing lending capacity of development banks is a way to help secure the resources that countries need."

Join us for a Jubilee USA, IMF and World Bank Press Conference: Friday, April 14th, 2:00 PM, Community Park Outside of IMF, view advisory and online and in-person press registration. (More info and and registration here).

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain-raiser speech here. 

Jubilee USA, IMF and World Bank Press Conference
Friday, April 14th, 2:00 PM

(Press RSVP to receive Facebook live link and ask questions online)

Where:
Outside IMF and World Bank, Community Park 1824-1884 H St NW, Washington, DC 20006.