BBC's Business Matters interviews Eric Lecompte on the urgent need for international action on debt relief in developing and middle-income countries. Click here to listen to the episode from 4:00 to 9:44. 

IMF: Rich world recovering faster than expected

By BBC Business Matters

Selected Statements from Eric LeCompte 

"These middle-income developing countries have stronger economies than the 77 poorest countries in the world, and right now, these particular countries are looking at the highest risk in terms of growing poverty rates, famine rates, and job loss."

"At the same time, these middle-income developing countries are also countries that have been left out of solutions proposed so far by the G20 and IMF in terms of aid packages and debt relief."

"We have seen a quite significant global conversation take place on expanding debt relief and increasing aid for the developing world."

"We see that the G20, as well as the IMF, are much more serious about ensuring that there is debt cancellation for the poorest countries."

"It's the developing middle-income countries that are going to see some of the most significant suffering, and that's where we need to move and increase debt relief measures."

Click here to listen to the episode from 4:00 to 9:44.

The IMF warns that rising US interest rates could impact the ability of developing countries to pay debt, leading to prolonged economic crisis. The warning comes ahead of IMF, G20 and World Bank meetings, with the Fund's release of the Global Financial Stability Report.

“All countries that defaulted over the last year were middle-income countries,” said Eric LeCompte, the Executive Director of the religious development organization Jubilee USA Network. “Unfortunately, developing middle-income countries are not included in IMF and G20 debt relief solutions."

The report warns that recovery from the pandemic will be unequal between rich and poor countries and that more needs to be done to strengthen long-term stability around the globe. This morning the IMF released the World Economic Outlook Report estimating that 95 million more people fell into extreme poverty over the last year, living on less than $1.90 a day.

"Wealthy countries invested in big stimulus packages and can rebound more quickly," said LeCompte. "Billions of people in developing countries are left behind and their lives will be even worse after the pandemic."

Read the IMF's Global Financial Stability report here.

Read Jubilee USA's release on the IMF's World Economic Outlook report here.

Read about the IMF extending a process to cancel debt payments for the world's 28 poorest countries here.

Eric LeCompte discusses the importance of leadership from women in global economic decisions. LeCompte speaks about his recent meeting with Treasury Secretary Yellen. Read an excerpt below, and click here for the full story.

What happens when women run the economy? We're about to find out

By Andrea Shalal

A study by the American Psychological Association showed that U.S. states with female governors had fewer COVID-19 deaths than those led by men, and Harvard Business Review reported that women got significantly better ratings in 360-degree assessments of 60,000 leaders between March to June 2020.

Women account for less than 2% of CEOs at financial institutions and less than 20% of executive board members, but the institutions they do run show greater financial resilience and stability, IMF research shows.

Eric LeCompte, a UN adviser and executive director of a non-profit that advocates for debt relief, said he noticed a clear difference during a meeting with Yellen and the leaders of Christian and Jewish faith groups last month.

“I’ve been meeting with Treasury secretaries for 20 years, and their talking points have been entirely different,” he said. “In every area we discussed, Yellen put an emphasis on empathy, and the impact of policies on vulnerable communities.”

Her male predecessors had a “brass tacks” approach that focused first on “numbers not people” and never mentioned words like “vulnerable,” he said.

Read the full article here.

The IMF Executive Board extended a process to cancel debt payments for the world's 28 poorest countries. 

"This is good news for poor countries struggling with the health and economic impacts of the coronavirus," noted Jubilee USA Executive Director Eric LeCompte who worked on the creation of the debt relief mechanism. "Cancelling debt, for these vulnerable countries, means resources can be spent on healthcare and social services."

The IMF debt relief process, the Catastrophe Containment and Relief Trust (CCRT) provided debt relief for the last year and now continues debt relief through October 15, 2021. The process previously offered debt relief for Haiti and three African countries hit by Ebola crises.

"While this is important debt relief in the short term, we now need to work on cancelling debts for the long term for these countries," said LeCompte. "Only long-term debt reduction can support developing countries to emerge from the pandemic with resilience."

Read the IMF release on the CCRT extension here.

Friends,

Please see below the incredible news coverage Jubilee USA and our joint efforts received in recent months.

This week we won our big campaign to release $650 billion in global SDR reserve funds for developing countries. This comes after our historic discussion with Treasury Secretary Janet Yellen to move our coronavirus response efforts.

Below you'll see how the media is showing the successes of our campaigns. Before you read all of the news coverage, please take action:

1.) Next week world leaders will make decisions on our coronavirus response campaigns. Please sign our petition here.

2.) Over 220 religious, labor, environmental, human rights and development groups have signed our coronavirus response letter to President Biden, the IMF and G20. Please have your group sign by April 6th before they make their next COVID decisions here.

3.) Donations to support our Jubilee USA mission and corona response campaigns are doubled now. Please make a gift. 

From the Wall Street Journal to Fox News to the Financial Times, the New York Times and your local paper - below you can find a sampling of how the global media has told our Jubilee USA 2021 story.

Gratefully,

Zach

Zachary Conti
Director of Policy and Advocacy
Twitter: @JubileeUSA
www.jubileeusa.org/support-us

JUBILEE IN THE NEWS
 

Climate Change is 'Big One' of 'Emerging Risks,' Says Treasury Sec. Townhall (March 31st)

Rare IMF relief offers a hope of green recovery to debt-laden nations Climate Home News (March 26th)

IMF Mulls Creating $650 Billion in Reserves After Yellen Nod  Bloomberg (March 23rd)

IMF staff recommends new allocation of $650 billion in emergency reserves: sources  Reuters, Fox, New York Times (March 23rd)

Religious, labor leaders optimistic after meeting with treasury secretary  The Catholic Spirit (March 22nd)

Catholic bishops meet with U.S. Treasury head to discuss COVID economic crisis Crux (March 19)

G-7 leaders support 'sizeable' Special Drawing Rights allocation  Devex (March 19th)

Papal priorities reflected in Yellen meeting, Catholic participants say National Catholic Reporter

(March 18th)

Nelson joins faith leaders in virtual roundtable discussion with US Treasury secretary Presbyterian Outlook (March 18th)

Yellen Tells Faith Leaders Poor Nations Need Help on Covid-19  Bloomberg (March 17th)

Yellen vows to use 'full power' of U.S. government to tackle climate change Reuters (March 17th)

US Treasury secretary meets with faith leaders about debt, COVID-19 Devex (March 17th)

UCC president, other faith leaders meet with Treasury Secretary Yellen on global pandemic response  United Church of Christ UCC News (March 17th)

Yellen to meet religious leaders, NGO group pushing for debt relief Reuters, New York Times, Fox (March 16th)

G-20 Moves Toward Consensus on IMF Reserve Firepower Boost Bloomberg (Feb 26th)

More than 200 groups urge G20 to back IMF issuance to help poor countries in pandemic Reuters (Feb 25th)

In Brief: US Treasury indicates support for SDRs in letter to the G-20 Devex (Feb 25th)

Yellen backs new allocation of IMF's SDR currency to help poor nations  Reuters (Feb 25th)

Religious Leaders urge Biden to support global coronavirus aid, debt relief The Record, Catholic Spirit and Catholic News (Feb 24)

In Brief: Catholic bishops call on Biden to expand debt relief, aid  Devex (Feb 24th) 

U.S. Catholic leaders urge Biden to lead drive for more aid to poor countries Reuters and US News (Feb 24th) 

Luis Miranda: He gets the job done National Catholic Reporter (Feb 19th)

Biden Urged to End Trump Lawsuit Blocking Payments to Puerto Ricans U.S. News (Feb 16th)

Biden reestablishes White House Office of Faith-Based and Neighborhood Partnerships National Catholic Reporter (Feb 14th)

Ivory Coast shows up debt relief flaws Refinitiv (Feb 12th)

In Brief: US urges G-7 to 'go big' on COVID-19 response Devex (Feb 12th)

U.S. tells G7 that it is back at the table to help with global recovery Reuters and New York Times (Feb 12th)

Zambia seeks debt restructuring under G20 common framework Reuters and Financial Post (Feb 5th)

Chad becomes first country to ask for debt overhaul under G20 common framework Reuters (Jan 28th)

Environmental activists cheer Biden’s decision to stop pipeline project Crux (Jan 27th)

Joe Biden’s Economic To-Do List U.S. News & World Report (Jan 22nd) 

Treasury notified Congress of its support for $650 billion in IMF global reserves, also known as Special Drawing Rights (SDRs), to assist developing countries struggling with the coronavirus crisis. US law requires a ninety-day advance alert to Congress before the US votes for SDRs with the IMF board.

“The notification paves the way for the US to vote in favor of these funds that developing countries need," said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. Jubilee USA advocated for the creation of these funds since the advent of the pandemic. "As early as the summer, hundreds of billions of these emergency reserve funds can now be authorized for countries struggling with the pandemic."

In February, Jubilee USA Network and the US Conference of Catholic Bishops sent a letter to Secretary Yellen and President Biden expressing support for a new SDRs allocation. Jubilee USA Network also coordinated a letter to the G20 signed by more than 215 organizations worldwide in support of SDRs. The G20 and IMF announced support for the $650 billion allocation.

Treasury says low-income countries will see $21 billion from a new allocation and other developing countries receive $221 billion.

Read the letter on SDRs, aid and debt relief from the US Conference of Catholic Bishops and Jubilee USA Network here.

World Council of Churches Quotes Eric LeCompte on faith-based organizational meetings with the IMF and World Bank to discuss global debt reductions. Read an excerpt below, and click here for the full story.

As debt piles onto the backs of poor countries, Christian community calls for relief

Climate Home News quotes Eric LeCompte on the impact of a $650 billion IMF SDR allocation on low- and middle-income, climate-vulnerable countries. Read an excerpt below, and click here for the full story.

Rare IMF relief offers a hope of green recovery to debt-laden nations

By Chloé Farand

As the International Monetary Fund is poised to inject $650 billion into the global economy, indebted low and middle-income countries are exploring ways to leverage the relief into green investments. In recent months, the plea of vulnerable nations for financial support has risen to the top of the international agenda. Revenues from the commodity trade and tourism collapsed in 2020, leaving many nations struggling to meet their basic needs, let alone invest in sustainable development. Cash-strapped governments in Africa, Latin America and the Caribbean do not have the luxury of borrowing cheaply to finance a green recovery from the coronavirus pandemic.

More than half of developing countries are estimated to be in debt distress, with interest payments accounting for at least a quarter of governments’ tax revenues in 2020 and raising to 40% in some countries, according to Jubilee USA Network. “The most consequential climate decision made in the next few months to five years will be made by the IMF, the G7, the G20 and the US Treasury as part of global pandemic response policies,” Eric LeCompte, executive director of Jubilee USA Network, told Climate Home News.

A debt repayment suspension initiative by the G20 has brought some relief but excludes middle-income countries, such as small island states, that have been hit hard by the pandemic and climate impacts.

Read the full story here.

The US Senate voted to confirm Adewale "Wally" Adeyemo as Deputy Secretary of Treasury.

Eric LeCompte, the Executive Director of the religious development group Jubilee USA Network and who works closely with US Treasury, releases the following statement on the confirmation of Treasury Deputy Secretary Adewale Adeyemo:

"Wally Adeyemo will be an outstanding Treasury Deputy Secretary.

"As the US and world wrestle with the pandemic and economic crisis, he understands the need to stimulate the US and global economy.

"Adeyemo is uniquely suited to work with world leaders on the debt, transparency, aid, climate and tax solutions that we need."

The International Monetary Fund announced $650 billion in emergency reserve funds are needed to confront the global coronavirus health and economic crisis. The funds are likened to a type of currency the International Monetary Fund creates, called Special Drawing Rights (SDRs).

"This announcement is incredible progress," stated Eric LeCompte, the executive director of Jubilee USA Network. LeCompte's development group advocated the use of these emergency reserve funds for more than a year. "This information now helps countries, like the United States, begin a process to authorize the creation of these emergency funds. Developing countries need these resources to confront the crisis as soon as possible."

About $224 billion would immediately go to developing low-income and middle-income countries in the creation of $650 billion SDRs. US Treasury has called for the remaining amount to be donated to support vulnerable countries.

SDRs were last created following the 2008 financial crisis. On Tuesday, Jubilee USA Network organized a roundtable with high-ranking religious leaders and Treasury Secretary Janet Yellen that focused on SDRs.

"Special Drawing Rights can provide support for countries struggling with the health and economic impacts of the coronavirus," noted LeCompte, a United Nations finance expert. "As countries are struggling with the crisis, SDRs are an important part of the relief developing countries need."

In February, the US Conference of Catholic Bishops and Jubilee USA sent a letter on SDRs to President Biden and Yellen. Jubilee USA Network with Latindadd, a Latin American development group, organized a letter with more than 200 organizations calling on the G20 to support a SDR issuance.

On Friday, the G7 agreed to a "sizeable" new issuance of Special Drawing Rights.

Read about Friday's G7 SDR announcement here.

Read about the March 16th Secretary Yellen Jubilee USA Network Meeting here.

Read the letter on SDRs, aid and debt relief from the US Conference of Catholic Bishops and Jubilee USA Network here.