New York State lawmakers extended their legislative session into the weekend as a vote on the New York Taxpayer and International Debt Crises Protection Act remains pending. The bill championed by Senator Brad Hoylman-Sigal and Assemblymember Pat Fahy, would bring "vulture funds" and private creditors into debt relief agreements for developing nations.

“If the legislation does not pass, hundreds of thousands of people could die in countries that desperately need debt relief,” said Eric LeCompte, Executive Director of Jubilee USA Network. “The Assembly Speaker, the Senate Leader and the Governor have the power to bring the bill to the floor now.”

 The bill has nearly 50 New York Senate and Assemblymember sponsors, and more unique memos of support than any other bill in recent history of the body, according to several legislators.

On Thursday, Oxfam America organized a letter from United Nations experts, economics and law experts and world leaders to Senators and Assemblymembers urging them to pass the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970). The signers include the lead economic advisor to the President of Zambia as well as UN Under-Secretary General Winnie Byanyima (Uganda) and Christiana Figueres (Costa Rica), the former Executive Secretary of the UN Framework Convention on Climate Change, who was the lead UN diplomat responsible for negotiating the Paris Climate agreement. Nobel Prize-Winner Economist Joseph Stiglitz, who separately co-signed a supporting memo with former Argentina’s Economy Minister Martin Guzman and former Colombia’s Finance Minister Jose Antonio Ocampo, also signed the letter. 

“The coalition of labor, religious, development, environment and diaspora groups behind the bill will keep pressing for passage until the end of session,” added LeCompte. “If the bill doesn’t pass this session, we will pass the legislation before 2024 is over.”

Find all Memos/Letters of Support for the New York Taxpayer and International Debt Crises Protection Act here.

Read the United Nations experts, economics and law experts and world leaders letter of support for the New York Taxpayer and International Debt Crises Protection Act here. 

Read all of the New York Taxpayer and International Debt Crises Protection Act resources here.

A bill requiring predatory "vulture" funds and private lenders to participate in debt relief for developing countries is moving through the New York State legislature. The New York Taxpayer and International Debt Crises Protection Act (A2970/S4747) cleared the Judiciary Committee of the Assembly with a bipartisan vote. Observers note that this is the first global debt relief bill to move in the New York legislature in almost 20 years. 

“The Governor, the Assembly Speaker and Senate Leader have to make a choice between some of their donors and a growing religion and labor coalition advocating for more than 60 countries in severe debt crises," said Eric LeCompte, Executive Director of the development organization Jubilee USA Network. “Too many developing countries can't provide food, healthcare and education for all of their people. The bill can help New Yorkers struggling with the cost of food. A decision can't wait and New York's leadership must get the bill to the floor for a vote this week."

From across New York State, more people are arriving in Albany this week to push passage of the bill. Constituents inundated the New York Senate and Assembly with thousands of emails, calls and messages to urge passage of the New York Taxpayer and International Debt Crises Protection Act this session (A2970/S4747). On Tuesday at 1:30 PM, daily vigils will begin outside the Senate and Assembly Chambers inside the New York State Capitol Building.

Lawmakers note they rarely see this level of support for any legislation. Economics Nobel Prize Winner Joseph Stiglitz, Argentina’s Former Economy Minister Martin Guzman and Colombia’s Former Finance Minister Jose Antonio Ocampo wrote a memo outlining the benefits for borrowers, investors and the international financial system in the legislation. The chiefs of the IMF, World Bank and African Finance Ministers also called for New York legislative solutions. In a letter to New York State lawmakers, the UN Independent Expert on Foreign Debt and Human Rights underscored the human rights benefits the legislation will bring.

The growing coalition of labor, religious, development, anti-poverty and environmental supporters include the New York AFL-CIO, New York AFSCME, the New York State Public Employees Federation, 1199SEIU United Healthcare Workers East Union, the Communications Workers of America, the New York State Catholic Conference, the New York State Council of Churches, the United Church of Christ, the Evangelical Lutheran Church in America Upstate New York Synod, the Methodist Church, the Presbyterian Church, Oxfam America, Bread for the World, the ONE Campaign, BRAC International, Catholic Climate Covenant, NY Renews and Fridays for Future. Puerto Rico's Speaker of the House and religious leaders on the island also voiced strong support for the bill.

"While this is a moral and ethical choice to move the legislation to the floor for a vote, it's also practical and necessary for New Yorkers," shared LeCompte who serves on United Nations Expert Finance Groups. "The law can lower food and fuel costs, stop economic shocks and ensure that New York is no longer an outlier in the global financial system. The bill must pass now to ensure that New York remains the world's primary financial jurisdiction."

Globally, the major debt and development coalitions, Latin America Network for Social and Economic Justice, the African Forum and Network on Debt and Development, Jubilee Caribbean, the European Network on Debt and Development, Debt Justice UK and Jubilee Germany are in support. Religious networks like the Caritas Africa and the Jesuit Justice and Ecology Network Africa also weighed in favor. In a statement, 23 Catholic Bishops from Africa urged passage of the legislation.

Find All Memos/Letters of Support for the New York Taxpayer and International Debt Crises Protection Act here.

Read all of the New York Taxpayer and International Debt Crises Protection Act resources here.

On Tuesday, June 6th through Friday, June 9th, an interfaith silent vigil will be taking place outside of the New York State Capitol Senate and Assembly Chambers from 1:30 - 2:30 PM.

African Catholic bishops, representing 23 countries, issued a statement to G7 leaders to take action on debt crises, development bank reform and greater aid for the continent hit by multiple crises. Finance ministers and central bank governors of the group meet this week, May 11th through 13th. Japan will host G7 ministers and presidents in Hiroshima on May 19th - 21st. 

The bishops raised Pope Francis’ call for effective and reliable processes to alleviate unpayable debts and advocated that private creditors participate in debt relief.

“The G7 include the major debt issuance jurisdictions that need to coordinate domestic legal reforms to deter [private] creditor litigation against countries renegotiating debts,” said the bishops. “Prompt passage of the New York Taxpayer and International Debt Crises Protection Act will do that for the large share of debt issued in that jurisdiction, and offers a simple and effective model other G7 countries can follow.”

New York State law governs more than 52% of contracts held by private creditors. Legislation pending in the state legislature and introduced by Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy would bring private creditors into international debt reduction agreements.

To prevent future debt crises, the faith leaders asked for greater use of debt contracts that increase risk-sharing between the borrowers and creditors, in the context of all types of lending.

African bishops commented on proposals that could expand multilateral development bank lending, currently under consideration by the G20. Since last year, shareholders led by the US and other G7 countries led a request for the World Bank to “evolve” through changes in its mission, operations and finances.

“[W]e approach with caution the intention to add new missions when the old ones – primarily poverty reduction and human development – remain so far from being fulfilled,” added the faith leaders. “Without an extremely bold injection of resources, such additions can only come at the expense of existing poverty reduction and development priorities in the places where they are most pressing.”

They also called for more African participation in the decisions on World Bank future.

The high-level religious leaders referred to the issuance of $650 in emergency liquidity currency – Special Drawing Rights – in 2021. More than $400 billion SDRs went to developed countries and only $33 billion to Africa. The IMF has two lending facilities that can receive SDR contributions to finance loans to developing countries.

“It is. . . essential to rethink Special Drawing Rights (SDRs) as an instrument of finance, and rechannel a significant portion of those held by wealthy countries to Africa,” stated the bishops.

The African Development Bank put forward a proposal for advanced economies’ SDR contributions to fund lending in the region, which the G7 currently considers.

“Africa's religious leaders know poverty in Africa because they lead so many major social services across the continent to alleviate poverty,” said Eric LeCompte, Executive Director of Jubilee USA Network, which supports Africa's Catholic Bishops in their advocacy. "Africa's religious leaders are positioned to explain to the G7 the need to address Africa's multiple crises.”

Find the African Catholic Bishops' Statement to the G7 here.

Since you live in New York, I write to ask for your help in passing the most significant debt relief measure in the last 25 years. Today is the 3rd day that religious leaders, unions and constituents from across New York are meeting with your New York Assemblymembers and Senators to pass the New York Taxpayer and International Debt Crises Protection Act (A2970, S4747). 

Because New York is the world's financial capital, most of the world's private debt is governed by New York law. Our Jubilee legislation will win relief, help stop economic shocks and protect New York taxpayers, consumers and our pensions.

Please write your Senator and Assemblymember now and urge them to co-sponsor our Jubilee New York Taxpayer and International Debt Crises Protection Act (A2970, S4747). Tell your Senator and Assemblymember that all of New York's biggest unions and major religious groups, the United Nations and the world's most prominent development organizations want this legislation passed by June 1st. Tell your Senator and Assemblymember that the legislation will relieve the debts of countries dealing with the pandemic and food crises. Tell your Senator and Assemblymember the legislation immediately stops predatory vulture funds and that the legislation represents the most powerful and comprehensive solution to deal with global debt and the economic shocks that are faced in New York.

The bill, introduced by Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy, brings private creditors into debt relief deals at the same level as the US government, other governments and creditors. Because 60% of developing country debt is held by private creditors, this is crucial to lower the debt of developing countries. More than half of those private contracts are signed under New York law.

Those are countries the US trades with, so addressing debt crises quickly helps lower inflation. The bill also prevents the US contribution to debt relief deals, paid by taxpayers, from bailing out private creditors. As debt crises in developing countries shorten, the law supports pension investments that depend on their economies’ performance.

Today, advocates from all across the state gather in Albany for an Advocacy Day to ask their representatives to pass this critical legislation now. Call and add your voice to theirs.

Major unions, churches, development and environmental advocacy organizations, as well as global debt partners, support this legislation. Join them and help us move your representative in the New York State Assembly and Senate to get this legislation across the finish line by June 1st.

The United Nations Expert on Foreign Debt and Human Rights issued a letter to the entire New York State Legislature, underscoring how important the New York Taxpayer and International Debt Crises Protection Act is to the protection of human rights worldwide.

With your support, we can deliver on the Jubilee promise.

Gratefully,

Aldo Caliari
Senior Director of Policy and Campaigns
Jubilee USA Network
[email protected]
www.jubileeusa.org/support-us

    

Jubilee USA Network
110 Maryland Ave. NE, Ste. 210 - Washington, DC 20002
(202) 783-3566 - [email protected] 

Jubilee USA Network
110 Maryland Ave. NE, Ste. 210 - Washington, DC 20002
(202) 783-3566 - [email protected]