The G20 meets in Hamburg, Germany for their annual meetings.

Eric LeCompte, Executive Director of the religious development group Jubilee USA, releases the following statement:

“When we look at how the G20 is trying to tackle inequality and protect the world from financial crisis, we see some progress and we need to see some more action. 

"To prevent financial crisis we need global rules that stop corruption and tax avoidance. We need a global bankruptcy process that can prevent the next financial crisis from happening.  

"‎An important aspect of this summit is that G20 leaders are supporting new policies to prevent debt crisis. The new G20 Operational Guidelines for Sustainable Development call on G20 member countries to pass stronger laws to stop corruption and enforce responsible lending and borrowing.

"While the new G20 guidelines fall short on determining whether or not a country's debt is sustainable, the guidelines are progress in protecting vulnerable people from economic crisis."

Ahead of President Trump's first G20 meeting in Germany this weekend, Mozambique released an audit exposing violations of the country's laws to secure now-defaulted loans. Nearly $2 billion in loans were secured by the government of Mozambique but hidden from the public and Parliament. Last week, Business Insider reviewed CIA data and ranked Mozambique as one of the most indebted countries in the world. The United Nations Development Programme ‎lists Mozambique as one of the least developed countries in the world at 181 out of 188 countries. 

“We know that the financial crisis in Mozambique was caused by corruption at the national and international level,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA. “It seems a group of Mozambique's leaders and creditors conspired to steal from some of the world's poorest people.”

The financial scandal and debt crisis facing Mozambique will be discussed in Hamburg by G20 leaders in the context of new responsible lending and borrowing guidelines during their annual two day meeting. Finance Ministers for the Group of 20 supported these "Operational Guidelines for Sustainable Financing" at their March meeting in Baden-Baden, Germany.

“The G20 is calling on its member countries to pass stronger laws to stop corruption and enforce responsible lending and borrowing,” said LeCompte who serves on United Nation debt expert groups. “While the new G20 guidelines fall short on determining whether or not a country's debt is sustainable, the guidelines are progress in protecting vulnerable people from economic crisis."

The Operational Guidelines for Sustainable Financing are available here. 

The Executive Summary of the audit of Mozambique is available here. 
 

The G20 meets in Hamburg, Germany on Friday and Saturday for their annual meetings.

Eric LeCompte, Executive Director of the religious development group Jubilee USA, releases the following statement:

"The G20 is focusing on inequality and inclusive economic growth during their meetings in Hamburg. These issues impact all of us, let alone the poorest people in our world.

"Behind closed doors the G20 conversation on inequality will get specific on debt and tax issues.

"‎It's important that the G20 will likely support new global guidelines on responsible lending and borrowing during their meetings. It's critical that the G20 continues efforts to thwart tax evasion and corruption."

The Puerto Rico power utility PREPA, filed for bankruptcy protection under the Title III process created by the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA).

Eric LeCompte, Executive Director of the religious development group Jubilee USA, releases the following statement:

"It's important that Puerto Rico's power utility filed for Title III bankruptcy protection. We can expect a more favorable debt restructuring for the people of Puerto Rico than the previous debt deal.

"In order for Puerto Rico to get out of this crisis, all debt should be dealt with through one comprehensive process. This is another reason that it is good news ‎that PREPA files under the same process that is being used to resolve most of the island's debt."

The European Parliament is set to vote on landmark corporate transparency rules known as "country-by-country" reporting. Under the new law all major multinational corporations, including US businesses that work in Europe, will publicly disclose taxes and other payments made to governments in countries where they operate. The European Union (EU) Parliament likely will vote in favor of the regulations before Wednesday and then the EU Council will make the final decision. ‎

“This is exciting news. Europe is moving forward the most comprehensive rules to date to stop bribery and encourage corporations to pay taxes where they operate,” noted Eric LeCompte, Executive Director of the religious development group Jubilee USA. LeCompte served on United Nations expert groups that focused on these new rules. “Unfortunately as we are making progress in Europe less comprehensive transparency regulations are threatened with repeal in the United States.”

‎As new transparency regulations in Europe move forward, similar US provisions are under attack. Section 1504 of the US Dodd-Frank Act requires oil, gas and mining industries to perform similar US reporting to the European measure. Congress slowed the US provision from moving forward earlier this year and then the US House of Representatives voted to repeal Section 1504 entirely. ‎Jubilee USA leads a campaign to prevent the Senate from repealing the transparency meassure.

“Corporate transparency rules are vital for combatting corruption and ensuring that our economy protects vulnerable communities,” said LeCompte.

The EU legislation includes an exemption for corporations to not disclose information if the disclosure would threaten commercial interests.

Puerto Rico's oversight board is holding its eighth public meeting in San Juan at the Sheraton Hotel Convention Center. In executive session on Tuesday, the board rejected a debt restructuring deal between bond holders and‎ Puerto Rico's power company known as PREPA.

“The PREPA deal was a bad deal and the board was right to reject it,” noted Eric LeCompte, Executive Director of Jubilee USA. LeCompte testified to Congress and the oversight board on the ‎island's debt crisis. "Puerto Rico needs significant debt relief and the PREPA deal fell short of a serious debt haircut."

The PREPA restructuring now likely moves to the Title III bankruptcy process. The process was created by Puerto Rico debt crisis legislation.

“The Title III bankruptcy process is important because it can deal with all of Puerto Rico's debt. All of the island's debt should be restructured in this one comprehensive process that can deeply cut the debt,”‎ said LeCompte.

This week, Judge Laura Taylor Swain continued the Title III bankruptcy proceedings and earlier this month appointed a team of federal judges to act as mediators in the bankruptcy process. The team will meet with representatives of Puerto Rico and its creditors for the first time on July 12.

“Puerto Rico's debt has a human cost. Nearly 60% of kids on the island live in poverty,”‎ noted LeCompte who serves on United Nations debt expert groups. "Congress made a promise to reduce child poverty on the island and the debt needs to be restructured in ways that will lift kids out of poverty."

The oversight board meets on the one year anniversary of President Obama signing a law that created the board and established a Congressional task force to make recommendations to reduce child poverty. The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) established the Title III bankruptcy process and protections for Puerto Rico from debt lawsuits.

Representatives Carolyn Maloney (D-NY) and Peter King (R-NY) heralded the House introduction of the Corporate Transparency Act at press conference at the House Triangle. The bill aims to prevent shell companies from hiding corrupt and criminal activity. ‎

“Dictators use financial secrecy to steal money from their people and human traffickers use shell companies," said Eric LeCompte Executive Director of the religious development group Jubilee USA. "We need Congressional action that protects vulnerable communities from being exploited through financial secrecy."

The legislation requires US corporations to disclose in a private registry that is available to law enforcement, the names of the owners who benefit from a business.

"The leadership of Representatives Maloney and King is critical as we work to promote a more transparent financial system,”‎ noted LeCompte.

Eric LeCompte, Executive Director of Jubilee USA was recently featured in The Financial Express speaking on trade. Read excerpt below and follow link to full article.

Jubilee USA Director Hails Inclusion of Dispute Settlement Mechanisms

By: Staff

"Eric LeCompte, Executive Director of the religious development group Jubilee USA, in a statement hailed the inclusion of dispute settlement mechanisms in the new trade negotiation goals.

'Trade agreements can be powerful tools for reducing global poverty and the new negotiating objectives recognise the need for trade to promote global development,' the statement said."

Read more here.

European Union Finance Ministers, the International Monetary Fund and Greek officials agreed on short-term debt plans for Greece but did not reach an agreement on long-term debt solutions.

Eric LeCompte, Executive Director of the religious development group Jubilee USA, releases the following statement:

"Greece needs significant debt relief as soon as possible. ‎There can be no sustainable economic growth without cutting the debt.

"The longer we wait to restructure the debt, the harder it becomes to resolve Greece's problems."

Eric LeCompte, Executive Director of Jubilee USA was recently featured in Agenzia Fides speaking on NAFTA. Read excerpt below and follow link to full article.

AMERICA/ UNITED STATES - “Promote Development and Protect Vulnerable Citizens” NAFTA Agreement for Revision

By: Staff

"Eric LeCompte, of the Jubilee USA Network, and Jennifer Hojaiban, sent a letter to Lighthizer stressing the need in these trade negotiations to promote development, to discuss problems and protect vulnerable citizens."

Read more here.

The International Monetary Fund, Eurozone Finance Ministers and Greek officials meet Thursday in Luxembourg to negotiate financing and further debt restructuring for Greece. 

The House passed the Financial Choice Act repealing multiple‎ measures enacted by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. 

“This legislation erodes protections that are meant to prevent future financial crisis. It also encourages high-risk speculative investment, a cause of financial crisis,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA. “This act removes oversight of payday lending and too big to fail banks."

‎The legislation that passed the House weakens the regulatory power of the Consumer Financial Protection Bureau (CFPB) over big banks and payday lending.

Another section of Dodd-Frank repealed by the legislation is Section 1504 or the "Cardin-Lugar" measure. Section 1504 requires reporting by oil, gas and mining companies of payments they make to governments in countries where they operate. Earlier in the year, Congress voted to delay implementation of Section 1504.‎

“I'm deeply concerned by attacks on transparency measures that protect vulnerable populations both at home and abroad,” noted LeCompte who serves on United Nations expert groups that focus on responsible finance. “While it's unlikely this legislation will pass the Senate, the Senate must reject any measure that fuels predatory lending, corruption and speculative risky investment.‎"