Presbyterian Mission features Aldo Caliari on the International Debt Crisis, private creditors, and the New York Taxpayer and International Debt Crises Protection Act. Below is a brief excerpt, and click here to read the full article.

Call to New York Presbyterians: Take Action on International Debt Crisis

By Aldo Caliari

In May, New York State Assembly member Patricia Fahy, Chair of the Banks Committee, introduced legislation that would ensure private creditors participate in debt relief initiatives at the same level as the US government, other governments and other creditors. Under the New York Taxpayer and International Debt Crises Protection Act, a debtor country cleared to have debt cuts in an international initiative would be protected from private creditor litigation. Should a private creditor sue, the legislation requires that the judge reduces their claim by the same proportion agreed in the applicable global debt initiative. Of course, with such ruling expected, the hope is that most creditors will likely not choose to go to court at all. Debtor countries can manage crises more efficiently, finding a quicker exit and lowering the economic and social costs to their people, especially the most vulnerable.

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