Washington DC - Debt vulnerabilities are on the rise and threaten global economic stability, G7 heads of state noted as they recommitted on actions to tackle debt challenges.

"The G7 is calling for faster and more efficient debt relief when most countries are facing crises," noted Eric LeCompte who leads the religious development coalition Jubilee USA Network. "It's critical that the G7 continues to take leadership on global debt challenges."

A declaration on mutually beneficial international partnerships reiterated a pledge to deliver debt relief in a predictable, timely, orderly and coordinated manner under the G20 Common Framework – the main process that is available for the poorest countries to seek debt reduction, agreed by the G20 six years ago. The group agreed to find a common approach to address debt problems of middle-income vulnerable countries that cannot access such process. The group of wealthy countries also noted that other developing countries needed to receive better treatment when dealing with debt challenges.

"When developing countries are facing crises because of debt, high fertilizer prices or war, it has a direct impact on the US and other developed countries," noted LeCompte who serves on United Nation economic expert groups, "We continue to deal with a growing global economic crisis that we feel when we go grocery shopping."

The share of revenue that countries spend on paying the interest of debt rose from 40% to more than 45% in the last two years.

In May, the US Treasury Secretary, Scott Besent and G7 finance ministers endorsed a blueprint for agreements between official creditors and debtors undergoing restructurings with the hope of quickening debt relief and restructurings.

“There is a desperate need for faster, more predictable and transparent debt restructurings,” stated LeCompte. "The G7 is essentially calling for countries to get debt relief before they enter a crisis." 

France will pass the G7 torch to the United States as the US hosts next year's G7 meetings. The US hosts the G20 this year, also with a focus on debt.

"The US government continues to make debt a central issue for world leaders to tackle," noted LeCompte who works with US government leaders. "The US G20 and US G7 will continue to focus on debt and global debt remains a key concern for Republicans and Democrats in Congress." 

Observers close to this year's G7 Summit report the French government will not release a final communique on the meetings, but rather a series of statements that include issues like debt representing the positions of world leaders.

Read the Jubilee USA press release on G7 Evian Summit Opening.

Read the Leaders' Declaration on Mutually Beneficial International Partnerships.

The New York State Assembly failed to vote on legislation that would stop "vulture" funds, protect US taxpayers and pensions as well as help reduce food and fuel prices. The “Champerty Fix Act” (S.1477, A.643-A) passed the Senate last week with an overwhelming majority and had votes to pass in the Assembly if it was allowed to go to the floor.

“We are very concerned that Speaker Heastie decided to keep the bill from going to the floor for a vote,” said Eric LeCompte, Executive Director of Jubilee USA Network. “While he has the power to bring legislators back, he bowed to special interests instead of listening to his constituents.”

The Champerty Fix Act prevents predatory hedge funds from purchasing distressed debt with the intent to litigate for full payment instead of constructively engaging in debt negotiations. The practice exploits legitimate investors, US pensions, US taxpayers and countries facing debt crisis.

A coalition of religious, business, union, anti-poverty, environmental, development and diaspora organizations support the legislation. The average developing country spends more than 45% of their revenue repaying debt.

"We won't give up. Passing this legislation is no longer a question of if it will pass, it's a matter of when," stated LeCompte who led the Jubilee coalition efforts.

Read the text of the Champerty Fix Act. 

Read the Jubilee USA memo of support. 

Read the Puerto Rico's Archbishop and the Head of Puerto Rico's Bible Society memo of support.

Read the Evangelical Lutheran Church in America Upstate New York Synod memo of support.

Read the Sisters of Mercy memo of support.

Read the Maryknoll Office for Global Concerns memo of support.

Read the NYS Catholic Conference of Bishops memo of support.

Read the Executive Director of the New York State Council of Churches Rashida Tyler and Jubilee USA Co-Chair Rabbi Matt Cutler in Albany Times Union.

Read the Jubilee USA press release on NY Senate Passing "Champerty" Debt Relief Bill

Read the Jubilee USA press release on NY Senate Debt Bill to Pass

Read the Jubilee USA Action Alert.

The New York Assembly adjourned this weekend and Assembly Speaker Carl Heastie refused to allow the "Champerty" debt relief bill to be voted on. Despite your thousands of phone calls and constituent, business, bipartisan, union, development organizations, Senate and interfaith support - Heastie bowed to special interests.

Contact New York State Assembly Speaker Carl E. Heastie immediately to cosponsor the Champerty Fix Act (A643-A) and pass the bill.

Because of your calls and work, we won NY Senate passage of our legislation. We also won enough bipartisan support in the Assembly to pass the legislation that would stop "vulture" funds, protect US taxpayers and pensions as well as help reduce food and fuel prices. 

New York State Assembly Speaker Heastie can still do the right thing. Keep the calls to his office coming!

Our coalition of faith, businesses, unions, anti-poverty, development and environmental groups and diaspora communities is not giving up. With your help, we can bring this critical legislation through the finish line.

Gratefully,

“Speaker Heastie can move this debt bill through the rules committee and bring the bill to be voted on by the Assembly," shared Eric LeCompte, who as Jubilee USA Network chief leads religious and labor efforts to pass the bill. “Since this legislation protects taxpayers, New York pensions and can help lower food and fuel prices, Heastie can support New Yorkers.”

Under the “Champerty Fix Act” (S.1477, A.643-A) predatory “vulture funds” cannot exploit countries in financial crisis. Some of the proponents of the bill argue the most important aspect of the legislation is lowering interest rates to a fair market rate when developing countries face debt crisis.

“Speaker Heastie can stand with the people of New York and Puerto Rico and oppose the behavior of vulture funds who hurt legitimate investors and poor people,” added LeCompte. "We urge Heastie to stand with his own constituents."

The Assembly Speaker can push the legislation through the rules committee and the lower house of New York would pass the legislation before it adjourns on June 4th.

Read text of the Champerty Fix Act. 

Read the Jubilee USA memo of support. 

Read the Puerto Rico's Archbishop and the Head of Puerto Rico's Bible Society memo of support.

Read Evangelical Lutheran Church in America Upstate New York Synod memo of support.

Read Sisters of Mercy memo of support.

Read Maryknoll Office for Global Concerns memo of support.

Read NYS Catholic Conference of Bishops memo of support.

Read Executive Director of the New York State Council of Churches Rashida Tyler and Jubilee USA Co-Chair Rabbi Matt Cutler in Albany Times Union.

Read Jubilee USA press release on Champerty Fix bill before NY Senate and Assembly

Read the Jubilee USA Action Alert.

"This legislation is critical for stopping behavior that exploits countries in crisis," noted Eric LeCompte who heads the religious development coalition, Jubilee USA Network. "One of the great aspects of this bill is that it lowers punitive interest rates when countries are in a debt crisis."

New York law governs more than 50 percent of privately held sovereign debt contracts. The “Champerty Fix Act” (S.1477, A.643-A) prevents predatory “vulture funds” from purchasing cheap debt with the purpose of litigating to collect in full. 

"Lawsuits from certain hedge funds, who are not making a legitimate investment in a country, delay the  resolution of debt crises," noted LeCompte. "These predatory firms not only impact social programs in developing countries, they also take advantage of taxpayers and legitimate Wall Street investors."

Religious, labor, anti-poverty, development, diaspora and environmental groups support the bill.

“The bill can help stabilize rising food and fuel prices as the legislation helps our trading partners,” said LeCompte. "It can also protect our pensions which have legitimate investments in countries and keep our taxpayer dollars from bailing out these funds."

In addition to curbing predatory behavior, the bill cuts the interest rate that debtor countries incur while lawsuits move through the courts, which incentivizes long litigation in New York courts.

The current session of the New York State legislature adjourns on June 4.

Read text of the Champerty Fix Act. 

Read the Jubilee USA memo of support. 

Read the Puerto Rico's Archbishop and the Head of Puerto Rico's Bible Society memo of support.

Read Evangelical Lutheran Church in America Upstate New York Synod memo of support.

Read Sisters of Mercy memo of support.

Read Maryknoll Office for Global Concerns memo of support.

Read NYS Catholic Conference of Bishops memo of support.

Read Executive Director of the New York State Council of Churches Rashida Tyler and Jubilee USA Co-Chair Rabbi Matt Cutler in Albany Times Union.

Read the Jubilee USA Action Alert.