Delivered at the 13th edition of the Paris Forum, “Advancing cooperation in a complex debt landscape,” (June 24, 2026), hosted by the Paris Club

Damon Silvers, Special Counsel, Jubilee USA Network

Question to Panel: Streamlining sovereign debt restructurings by strengthening coordination between creditors

Professor Hagan asked at the beginning of this session, what kind of problem do we have in sovereign credit markets, and what kind of change is required?

It seems like the answer is right in front of our faces– and it is touched upon by both the US and Chinese government speakers earlier today– a system that takes a long time to produce opaque and inequitable outcomes as between creditors, and a system that has no real or timely way to deal with diverse and potentially intransigent private creditors that are increasingly prominent in a system designed at the founding of the Paris Club for public creditor leadership.

We have heard over and over again today that debt restructuring involves enormous stakes, affecting the living standards and human capital development of billions of people, planetary decarbonization efforts, and global security arrangements. Consider the stakes in a situation like the impact of Hurricane Melissa– which cost Jamaica an amount equivalent to 56.7% of GDP in a country whose foreign debt service burden then accounted for 38% of its total tax revenues.

And yet the actual architecture for resolving troubled sovereign debt is less well defined than the legal regimes that would govern the bankruptcy of a small business in any of the Paris Club member countries. Specifically no member country’s commercial law system would work if individual creditors could hold out and seek full payment in the courts.

Would the speakers agree that sovereign debt restructuring requires actual rules to prevent holdouts from seeking full payment in national courts AND that the definition of these rules for debt restructuring need to include the views of borrowing countries as well, not only coordination amongst creditors? 

Eric LeCompte, the Executive Director of Jubilee USA Network, was recently highlighted in Reuters, commenting on debt restructuring.

Eric LeCompte, the Executive Director of Jubilee USA Network, was recently featured in Reuters, discussing the current state of the global economy. 

President Trump and other G7 Presidents head to France as French President Emmanuel Macron hosts this year's G7 Summit. France’s G7 agenda, for the three days of meetings of some of the world's wealthiest countries, focuses on global financial stability, development partnerships, trade, debt and shocks created by the Middle East wars. 

“Due to the continuation of the Middle East wars, the global economy is dealing with the worst possible economic forecasts,” said Eric LeCompte, Executive Director of the religious development coalition Jubilee USA Network. “For the poorest countries, this shock will have dire impacts for years to come. For all of us, food costs will continue to soar."

In a study released this month the World Bank projects that, while impacts on developing countries vary, their growth will be overall slower than last year, worsening food and job crises. As their debt increases, they face higher interest rates and payments, making a debt crisis more likely.

“Historically the G7 made some of the most important decisions on debt relief,” added LeCompte, a UN debt expert who advises religious leaders on economic issues. "We need the G7 to take action on the global debt crisis again."

As France hosts the G7, the US chairs the G20 and places a priority on improving debt restructurings and transparency, and the US will take over the G7 Presidency next year.

“The US focus on debt priorities offers important continuity for the work that can be done this year and next year on improving global debt policies,” shared LeCompte.

Aldo Caliari
Senior Director of Policy and Strategy

Twitter: @AldoCaliari
www.jubileeusa.org/support-us

1.) Ask to be transferred to New York State Assembly Speaker Carl Heastie

2.) Tell Assembly Speaker Heastie (or leave a message):

“Please cosponsor the Champerty Fix Act (A643-A), reopen the Assembly session and bring the bill to the floor for a vote. The bill already passed the Senate with overwhelming support. It protects countries in debt crisis from the predatory action of “vulture” funds and protects pensions, taxpayers and New York as a primary financial hub. Champerty can help bring down the prices of food and fuel. It also reduces too high interest rates on countries struggling in debt crisis.”

Dear Friend, 

Thanks to you and the thousands of phone calls you generated, our Jubilee debt "Champerty" bill passed the Senate. The New York Assembly has extended their through tonight and your pressure and our Jubilee team on the ground here in Albany is pushing Assembly Speaker Heastie to move our bill to the floor.

Please make a donation now to support our efforts that address global poverty, corruption and lower our too high food and fuel prices. Your gifts are doubled now.

Today, the average developing country spends more on debt than health, education and all social issues combined. Debt crises endanger US retirement and pensions. When our trading partners are in crisis - it impacts what we pay at the gas pump and what we buy at the store. 

Because of you, Republicans and Democrats continue to champion our work. As the US Government is hosting the G20 this year, we won support from US Treasury to expand our debt relief and development efforts.

As we mobilize the religious community, businesses and unions to move the G20 - we need you to join me and make a gift right now. Your gift will be doubled, is tax-deductible and helps us build a more affordable economy for all of us.

Your actions were how we stopped predatory "vulture" funds in New York in 2012 and 2014. Your support means that we've won more than $800 billion in aid and relief for developing countries. Because of you, every G20 meeting has made a global economy that is more transparent and that works better for all of us. 

Gratefully,

Eric LeCompte
Executive Director
Jubilee USA Network
[email protected]

Twitter: @Eric_LeCompte
www.jubileeusa.org/support-us

The New York State Senate passed debt relief legislation, last night, that offers debt relief and stops predatory hedge funds from exploiting countries facing crisis. The Champerty Fix Act heads to the Assembly. With enough votes to pass the bill, Assembly Speaker Heastie can bring the debt legislation to the floor before session ends.

Eric LeCompte, the Executive Director of Jubilee USA Network, was recently featured in Devex, revealing optimism towards what the G20 can accomplish in 2026. 

The New York State Senate is poised this week to pass debt relief legislation, or the Champerty Fix Act. The bill must be taken up by the lower house, the New York State Assembly, this week to move the legislation for the Governor's signature.

The Co-Chair of the Jubilee USA Network Board, Rabbi Matt Cutler and Executive Director of New York State Council of Churches, Rashida Tyler, provided insights on how the Champerty Fix Act (S1477/A643A) aligns with Jewish and Christian Faith in a recent Times Union opinion article. 

1.) Ask to be transferred to New York State Assembly Speaker Carl Heastie

2.) Tell Assembly Speaker Heastie (or leave a message):

“Please cosponsor and bring the Champerty Fix Act (A643-A) to the floor for a vote. The bill protects countries in debt crisis from the predatory action of “vulture” funds and protects pensions, taxpayers and New York as a primary financial hub. Champerty can help bring down the prices of food and fuel. It also reduces too high interest rates on countries struggling in debt crisis.

Urge NY Speaker Heastie to Bring Debt Bill to Assembly Floor