Bloomberg quotes Eric LeCompte on the Sovereign Debt Stability Act (S5542/A2970) and the necessity for this merged legislation. Read an excerpt below or the full article here.

New York Politicians Renew Push to Solve Sovereign Debt Crises

By Zijia Song and Nicolle Yapur

“The merged legislation is critical as it gives countries options to get out of debt crisis and restructure debts back to profitability for investors,” said Eric LeCompte, executive director at Jubilee USA Network, a nonprofit group that advocates for debt relief for smaller economies.

On Wall Street, though, the amended bill stands to cause further angst. Major investors including Pacific Investment Management Co. and Fidelity Investments last year pushed back against similar efforts, warning that new rules could result in higher borrowing costs for emerging-market governments — and potentially cripple the sovereign bond market.

Such “top-down, unilateral” solutions to sovereign debt restructuring often stoke uncertainty in markets, resulting in high borrowing costs for vulnerable economies, said Sonja Gibbs, managing director and head of sustainable finance at the Institute of International Finance.

Read more here.

The Justice, Peace and Development Commission of the Catholic Symposium of Episcopal Conferences of Africa and Madagascar (SECAM) issued a statement calling for effective debt relief, a significant increase in the flow of resources for development and strengthened governance frameworks as the 56th Conference of African Ministers Meetings commence in Victoria Falls, Zimbabwe. 

Read the statement here.

Read the press release on the statement here.

CLICK HERE TO REGISTER.

The Brazilian Presidency of the G20 hosts finance ministers for their first G20 meeting this year. Brazil’s vow to make the reduction of poverty and hunger priorities this year takes place amidst the world’s worst growth projections in the last three decades, spreading armed conflicts and rising debt payments.

“Debt payments in developing countries are equal to what many of these countries spend on health, education, social programs and climate issues combined” said Eric LeCompte, Executive Director of Jubilee USA Network. “Giving developing countries effective tools to cut their debt is essential for progress on any of the priorities the G20 sets for this year.”

The World Bank forecasts that debt payments will rise 10% in 2023-2024 compared to the previous two years. A G20 debt reduction initiative began in 2020, the Common Framework, has only attracted four applicants, three of which remain stuck without an exit to their debt crises.

Brazil continues the G20 efforts to increase the capacity and to reform development banks.

“The G20 needs to track how development banks meet new challenges and growing demands,” noted LeCompte.

Brazil also announced plans to advance the group’s cooperation on halting climate change and aligning financial actions with the objectives of the Paris Climate Agreement.

“The G20 can build consensus on meeting the climate funding goals that the UN climate conference needs to finalize by the end of this year," shared LeCompte.

This year’s UN climate conference, COP29, is the deadline for agreeing on a new climate finance goal starting in 2025. G20 leaders agreed last year that $100 billion a year is the floor for any new climate finance commitments.

“We worry that too many of the increased climate resources may come in the form of loans that add to high debt burdens.”

In last year's October G20 gathering the group avoided commenting on the conflict in Israel and Gaza.

"There are strong tensions among G20 leaders around the conflicts and humanitarian crises taking place in Ukraine and Gaza and Israel."

Reuters and Yahoo News quote Eric LeCompte on the Global Sovereign Debt Roundtable. Read an excerpt below, or the full article here.

Focus on timelines, predictability at next sovereign debt roundtable, IMF chief says

By Andrea Shalal

Debt and War Present Major Global Economic Challenges According to IMF

America Magazine quotes Eric LeCompte on the current global economic system's inability to eradicate poverty. Read an excerpt below, or the full article here. 

The Weekly Dispatch: Wisdom from Pope Francis for the billionaires meeting in Davos

By Kevin Clarke

Eric LeCompte is the executive director of Jubilee USA Network, a coalition of religious, development and advocacy groups focused on debt relief for the world’s poorest economies. He believes “from a Catholic point of view,” there is good reason to look askance at some of the “false promises” coming out of Davos, including “the idea that artificial intelligence, better technology and the economic system as it is can deal with global poverty, deal with inequality, create the jobs we need as well as protecting our planet.”

“These are messages that the church has been skeptical about,” he says, “knowing that throughout human history, unless we have an ethical economy, no matter what technology we have or what new systems or new businesses we have, we’re not going to create the world that is…promised, where we all have enough.”

Davos is an experience, Mr. LeCompte says, where important ideas are discussed, business relationships secured and deals made, but in the end not much is practically achieved in terms of addressing global poverty and inequity. Its relevance has been even more diminished, he believes, since the arrival of tech giants on the Davos scene, who use the conference to showcase their digital wares and vision. To many it is merely “the best party in Europe.”

Read more here.

Friend,

Pope Francis and Africa Catholic Bishops Call for Debt Relief to Fight Climate Change Impact on Developing Countries

Most Developing Countries Spend More on Debt Service than on Addressing Country Climate Crisis Challenges

Dear Friend,

Today, #GivingTuesday, falls during multiple global crises that can often feel like too much to comprehend. Because of you, Jubilee USA won hundreds of billions of aid to confront the pandemic and debt, food, disaster and climate crises. World leaders are considering our proposals to prevent future crises. These solutions are needed to help every day households in the US, Puerto Rico and the entire world.

Please donate to Jubilee USA Network to support our mission and efforts to address global crises and the structures that create poverty, inequality and harm to our planet. Your tax-deductible gift is matched and doubled now.

Over the past year, your generosity meant:

• The New York Taxpayer and International Debt Crises Protection Act, with bipartisan support, was the first global debt relief legislation to move out of committee in the New York State legislature in 20 years
  
  
• From the US and other wealthy countries, we won pledges of $87 billion in Special Drawing Rights to support developing countries
  
  
• The G20 approved proposals that increase development bank loans, aid and grants by $15 billion a year, and we are moving them to provide hundreds of billions more
  
  
• As 60% of Puerto Rico's children live in poverty, we convened the leaders of the largest Puerto Rico and US religious groups to sign a letter to Congress calling for Puerto Rico to receive the same level of nutritional assistance (food stamps) that US States receive
  
  
• We organized and supported a New York, national and global coalition of over 60 groups, comprising the largest unions, major religious institutions, development groups, notable economists, finance ministers, powerful environmental organizations, our global partners and high-level United Nations officials
  
  
• In partnership with Africa's interfaith religious leaders and biggest religious institutions, we are advocating for debt relief, new economic policies and effective use of aid resources for pandemic response, the climate crisis and recovery in Africa
  
  
• We convened some of the world's most notable experts for a process to improve debt relief assessments and align them with labor, human development and climate goals
  
  
• The US and other wealthy countries committed to a minimum of $100 billion in climate finance after 2025, and a new fund to compensate countries most vulnerable to climate change
  
  
• We addressed world leaders at some of the largest global decision-making forums at the United Nations, World Bank and International Monetary Fund
  
  
• Hundreds of thousands of newspapers and television and radio shows covered our Jubilee USA efforts

Please join me and make a tax-deductible gift this #GivingTuesday, so Jubilee USA can continue to create and advocate for solutions that save lives, our planet, and prevent future crisis. Donations are doubled now.

In solidarity,

Eric LeCompte
Executive Director

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