Washington DC - The IMF says we face the worst economic crisis since the Great Depression because of the coronavirus. As world leaders gather virtually for the Spring International Monetary Fund and World Bank Meetings, the Fund released its April World Economic Outlook Report, dubbing the crisis, the "Great Lockdown" and reporting that the global economy will lose at least $9 trillion in 2020 and 2021.  

"This is the most frightening news the Fund has ever released on the status of our global economy," noted Jubilee USA Executive Director Eric LeCompte, who tracked IMF meetings and reports since the 2008 financial crisis. LeCompte's organization detailed a financial crisis plan to the IMF on March 23rd. "When you analyze what the IMF is actually saying, the message is things could even get worse and they really don't know how bad it can actually get."

The IMF report forecasts that if "lockdowns" and the spread of the virus becomes more limited in the Fall, we could see economic growth for some countries in 2021. However, those growth projections would already be below previous IMF 2021 growth projections.

The IMF report forecasts the economy will contract 3% in 2020 before coronavirus containment policies can be gradually loosened, with economic growth of 5.8% predicted as the economy stabilizes.

Over the next three days, the G7, G20, IMF and World Bank will meet to determine solutions to deal with the growing crisis.

"Urgent action is required by the IMF and G20 this week," stated LeCompte, a United Nations finance expert. "During the meetings this week world leaders must move forward aid, financing and debt relief for developed and developing countries so people can survive the devastating health and economic impacts of the coronavirus crisis."

Read the April 2020 World Economic Outlook here

Read about the IMF's Debt Relief for 25 Poor Countries here

Read about the Catholic Bishops Letter to Urge President Trump to Lead Global COVID-19 Debt Relief here

Read Jubilee USA's March 23rd letter to IMF on a health and economic COVID-19 plan  here

Read Jubilee USA's April 1st letter to the IMF on reserve gold funds here

Friends,

Our urgent coronavirus campaigns to bolster healthcare in the developing world and protect all of us from financial crisis are moving forward urgently. In recent weeks, we've won several campaigns to cancel some debts and deliver grants for the 29 poorest countries to improve health services. We won commitments from the IMF to increase resources for all countries in need so they can increase social protections and keep paying workers.

Now, the White House, IMF and G20 are working through this Easter weekend and will announce decisions next week about canceling debt payments for the 76 poorest countries in the world and providing aid for countries that need it.

Yesterday the head of the International Monetary Fund said the current economic crisis spurred by the coronavirus is on par with the Great Depression. Please sign our petition to the IMF and G20, urging financial crisis protections that are critical for our survival in both the developed and developing world.

In early February, Jubilee's Executive Director, Eric LeCompte, travelled to Rome for an intimate meeting with Pope Francis, the head of the IMF, a dozen finance ministers and world leaders. The meeting focused on Jubilee's concern of a pending financial crisis. At the early February meeting, we began planning for the health and economic impacts of the coronavirus.

On Wednesday, the United States Conference of Catholic Bishops and Jubilee USA sent an urgent joint letter to the White House:

"As the G20 considers a suspension of debt payments from the 76 poorest countries in the world, the United States can lead the world, again, in calling on wealthy countries, the G20, the IMF and World Bank, to suspend debt payments for developing countries," wrote Bishop David J. Malloy on behalf of the US Catholic Bishops along with Jubilee's Eric LeCompte. "Suspending debt payments, with no interest, can immediately allow countries to access funds to bolster their health systems and support needed stimulus packages in the developing world—allowing these countries to provide for their own health, safety and security."

This letter was covered by hundreds of newspapers around the world, your local communities and wire services like Reuters and the Catholic News Service.

Since this letter was sent, national Jubilee USA partner organizations and faith communities are preparing another White House, G20 and IMF letter on protecting the vulnerable and stopping financial crisis ahead of next week's decisions. This new letter is already signed by the Episcopal Church, the Evangelical Lutheran Church, the Presbyterian Church, the Methodist Church, Oxfam America, Church World Service and synagogues, dioceses and churches from North Carolina to Indiana to Puerto Rico to Montana.

With our global Jubilee partners, we organized a statement calling for debt cancellation with 200 development groups from around the world. We supported 165 world leaders, former Presidents and Prime minsters to urge the G20 to cancel debt and save lives. Now, we need you to sign our IMF petition before they make decisions next week.

The United Nations Conference on Trade and Development last week called for a trillion dollars of debt to be cancelled in the face of the coronavirus pandemic. All of Africa's finance ministers joined our call. Our friends - a coalition of 200 US Africa policy groups - the Advocacy Network for Africa Forum is calling for a Jubilee! 

Just moments ago - the International Chamber of Commerce, the institutional representative of over 45 million businesses and the International Trade Union Confederation just asked the IMF and Finance Ministers to cancel debt so countries don't have to deny their people health services.

On Tuesday, groups representing "Jubilee" organizations around the world wrote the heads of the Fund and the World Bank to press broader aid and debt relief efforts. The letter was sent from the African Forum and Network on Debt and Development, the European Network on Debt and Development, Jubilee UK, Jubilee Germany, the Latin American Network on Debt and Development and Rights, Oxfam International, the French Catholic - La Plateforme Française Dette & Développement, the Society for International Development and Jubilee USA Network.

As hundreds of Jubilee USA congregations and organizers mobilize petition drives and actions across the United States, please sign our IMF petition. The IMF, G20 and White House will announce the next round of decisions on our Jubilee campaigns before next Thursday.

As many of us reflect on Good Friday and wrestle with the coronavirus, we feel sadness and loss. We feel anxiety. Many of us in the US and around our world are suffering. As we reflect, let us take a moment to prayerfully act - our survival around the world depends on it.

Best, 

Kate

Kate Zeller
Campaigns Director

P.s. Please make a donation to Jubilee today. All donations for Jubilee USA Network are doubled today and will immediately support our coronavirus campaigns.

Hundreds of World Leaders and Development Groups Call for Debt Cancellation

Washington DC - The US Conference of Catholic Bishops and Jubilee USA Network, an interfaith religious group, is urging President Trump to lead the G20 on coronavirus global debt relief plans. The groups argue debt relief immediately allows developing countries to bolster healthcare and survive economic crises.

"As the G20 considers a suspension of debt payments from the 76 poorest countries in the world, the United States can lead the world, again, in calling on wealthy countries, the G20, the IMF and World Bank, to suspend debt  payments for developing countries," wrote Bishop David J. Malloy and Eric LeCompte in a letter to the President on Wednesday. "Suspending debt payments, with no interest, can immediately allow countries to access funds to bolster their health systems and support needed stimulus packages in the developing world—allowing these countries to provide for their own health, safety and security."

PDF version available here

PDF version available here

Washington DC - IMF Head Kristalina Georgieva foreshadowed next week's Spring IMF and World Bank Meetings with her annual "curtain raiser" speech.

"Georgieva's speech acknowledges that we are now facing the worst economic crisis since the Great Depression.

"We're impressed by much of the forward thinking of the IMF. We need to deal with the health and economic crisis now and start to think about recovery.

"I agree with the Fund that we need to expand debt relief and poor countries should stop making debt payments. However, the IMF thinking on the amount of debt relief needed is not enough. We need at least hundreds of billions of debt relief measures, not billions."

Read Kristalina Georgieva's "Curtain Raiser" Speech here

Read Jubilee USA's March 23rd letter to IMF on a health and economic COVID-19 plan  here

Read Jubilee USA's April 1st letter to the IMF on reserve gold funds here

April 1, 2020

Kristalina Georgieva
The International Monetary Fund
700 19th St NW,
Washington, DC 20431

"And the crowds asked him, “What then shall we do?” And he answered them, “Whoever has two tunics is to share with him who has none, and whoever has food is to do likewise.” --- Luke 3:10-11

Managing Director Georgieva,

Since Jubilee USA leadership wrote you on March 23rd, we are pleased to see some critical Fund responses to protect the vulnerable and all of us from financial crisis in the face of the coronavirus.

We welcome the following actions: 

• The expansion and use of the Catastrophe Containment and Relief Trust to provide debt relief and health service aid for the poorest countries in the world
• Increased financing to support all countries who need resources to prevent financial crisis, increase social protection floors and ensure workers can continue to be paid
• The calls of the IMF and World Bank to the G20 to suspend all debt payments for the 76 poorest countries in the world
• Support of the G20 and world leaders to come up with a comprehensive action plan on debt vulnerabilities by mid-April
• Exploring processes with the G20 and Financial Stability Board to protect us from a global financial crisis

The above actions are positive steps and we are grateful for your leadership in moving forward these vital actions.

We believe the Fund should take additional, deeper actions to expand debt relief, aid to the poorest countries in the world as well as offer greater relief to the so-called Middle Income Countries.

This is possible if the fund were to access the $140 billion we believe to be held in the IMF's gold sales reserve. These monies should be utilized to expand debt relief for the 76 poorest countries and other developing countries.

If our calculations are correct, based on the latest IMF financial statements available from 2019 and calculating the current price of gold, we believe the fund has about $140 billion in a "rainy day” fund. We are witnessing a growing storm, perhaps the worst economic hurricane we will ever see in our lifetimes. The time to utilize and access these monies is now.

In our work together, we've accessed these monies before. In 2010 when Haiti was devastated by an earthquake and in 2014 when Sierra Leone, Guinea and Liberia fell prey to the Ebola epidemic, these funds were creatively used to cancel debt and provide emergency aid.

While the expansion of the Catastrophe Containment and Relief Trust is an incredible step, due to the limited funds in the account, 29 countries may be eligible for partial debt relief and aid. The funds available in the SDA gold sales reserve could provide full cancellation and additional aid for many countries facing great need. 

Further, we invite the IMF and World Bank to also suspend debt payments for poor and developing countries.

We again point to our letter of March 23rd and the analysis and four point plan that we detailed to lift the vulnerable and prevent a global financial crisis. Generally, that letter encourages urgent action along these points:

• Expand debt relief and aid for developing countries impacted by COVID-19 through the Catastrophe Containment and Relief Trust and other processes
• Enhance debt restructuring, issue debt payment moratoriums and create expedient debt reprofiling processes for countries impacted by the coronavirus
• Mobilize additional financing resources to support increased needs
• Advise countries on public budget transparency, financial crisis prevention and raising revenues

Managing Director Georgieva, we know that we are likely confronting the worst economic and health crisis in our lifetimes and we look forward to continue working with you to take bold, urgent and needed actions for our survival.

In hope,

Eric

Eric LeCompte
Executive Director

Full letter PDF here

Vatican Official Calls for "Jubilee"

Washington DC -  A United Nations agency that predicted the 2008 financial crisis is calling for $1 trillion in debt relief for developing countries to battle the economic impacts of the coronavirus. 

"We are in a recession and likely facing the greatest financial crisis since the Great Depression," stated Eric LeCompte, the Executive Director of the religious development group Jubilee USA. "Massive debt relief and aid is needed as developing countries attempt to withstand the economic shocks caused by the coronavirus."

Friends,

I pray that you and your loved ones are well.

Thanks to your partnership, we have the chance to fully win campaigns we've worked on for nearly 25 years. While our strategic efforts make significant gains every year - we are in a moment where world leaders are seriously reviewing our proposals to stop financial crisis, protect the vulnerable and address extreme poverty.

After weeks of meetings and strategic planning, on Monday morning Jubilee USA's leadership sent a letter to the head of the IMF detailing a plan to bolster healthcare for the world's poorest people and protect all of us from a financial crisis. Our multi-year advocacy and strategic high-profile efforts achieved a lot this week. In a time that is so challenging, we're grateful to be heartened by so many victories.

Will you please make a gift and support Jubilee USA today? All gifts are doubled now and support our life-saving, transformative work.

• Yesterday, the IMF agreed to our proposal to expand debt relief and provide grant-like aid, as the coronavirus spreads, to the world's poorest countries to bolster healthcare. They are using a mechanism we pushed for and created to deliver relief to Haiti after its earthquake 10 years ago and then transformed to deal with the 2014 Ebola epidemic
  
  
• This week, the IMF and World Bank took up our G20 call to suspend debt payments to the 76 poorest countries in the world
  
  
• The IMF announced it will double its capacity to provide emergency financing and aid to all countries that need it to prevent financial crisis in the face of the coronavirus
  
  
• On Wednesday, after two years of work, the IMF supported the plan to reduce Somalia's debt from $5 billion to $577 million
  
  
• This week our views appeared in tens of thousands of newspapers and outlets around the world like: Fox News, the New York Times, the Miami Herald, the Minneapolis Star Tribune, CNN, NBC, ABC, CBS and the Associated Press

Your contributions now also help us work with and push Congress, the G7, G20, IMF, World Bank and the White House as we expand financial crisis and debt crisis resolution tools in the United States and at the United Nations and the International Monetary Fund. While we’ve made much progress since the 2008 financial crisis, now world leaders are looking more closely at full implementation of many of our proposals.

As our coronavirus campaigns move forward, Jubilee USA continues our campaigns to end extreme poverty and address inequality. In early February, we met with Pope Francis, the head of the IMF and a dozen finance ministers to move forward our campaigns on debt, tax, trade, corruption, transparency, climate and disaster aid. During our day together, we were concerned how shocks like the coronavirus can disrupt both wealthy and poor economies. When Pope Francis addressed our small group, he endorsed all of our campaign efforts.

Your tax-deductible gift now is also vital for us to continue our other campaigns at this time.

• Congress passed and President Trump signed our nearly $6 billion request in healthcare aid for Puerto Rico earlier this year. We also expedited the release of hurricane relief funds. As earthquakes continue to shake the island, we worked with the House to pass nearly $4 billion in aid. We need your help to move the Senate as we work to secure more disaster aid and assistance for Puerto Rico in 2020 as they also wrestle with the coronavirus. In the stimulus package we won more aid for Puerto Rico. With your support over the coming year, we must move forward tens of billions of dollars of additional aid
  
  
• We just won the next phase of debt relief for Somalia. After two years of work, the IMF approved debt relief and President Trump signed our legislation into law. We moved Congress and the International Monetary Fund to pass Somalia debt plans which mean building new roads, women's empowerment, kids going back to school and ending the tragic reality that 73% of people live in extreme poverty. Over the next months, we'll need your help to further move the White House, Congress, the IMF and the Paris Club to authorize and fund the debt relief
  
  
• Our work on climate debt and finance is critical now. Ahead of climate negotiations this year, Jubilee USA is organizing religious communities to ensure that our policies are included in the agendas
  
  
• Our interfaith, bipartisan NAFTA, US Mexico Canada trade campaign won all of our goals. We stopped predatory "vulture" funds from using trade deals to collect on old bad debts. We ensured that most abusive corporations can't exploit trade deals to take advantage of poor people or local laws. We removed the language that would keep medicines and drugs unaffordable for vulnerable communities and all of us. We organized the largest denominations in the US to work with us on this critical campaign and will continue these trade efforts in 2020. We were joined in this work by the leadership of the Presbyterian, Lutheran, Episcopalian, Methodist, Catholic and United Church of Christ Churches. Our work now focuses on 4 countries and a possible Congressional vote in May on access to medicines for all of us
  
  
• We won support from the White House and passed our Jubilee Corporate Transparency Act in the House of Representatives. Once we pass it in the Senate, this legislation helps stop human traffickers, protects debt relief and development aid and raises revenue in the developing world. We are close to a deal in the Senate and organized almost 100 faith communities to work with us to move this forward. We expect our Senate vote in the next few months and need your support to push this across the finish line
  
  
• We continue our strategic efforts on student debt and payday lending. Your support helps us weigh in at critical moments with state governments, Congress and the White House

Please make a tax-deductible gift and support our Jubilee work today. Your gift is needed, has a big impact and is doubled today.

Gratefully,

Eric

Eric LeCompte

Friends,

We are sharing some good news amidst these trying times.

Together - we just won three of our campaigns in the last 48 hours! And since we launched our coronavirus campaigns, we see mind-blowing progress every day.

•  Moments ago the IMF agreed to our proposal to expand debt relief, as the coronavirus spreads, to the world's poorest countries to bolster healthcare
  
  
• The IMF just announced it will double its capacity to do below market-rate lending to all countries to prevent financial crisis in the face of the coronavirus
  
  
• On Wednesday, after two years of work, the IMF supported the plan to reduce Somalia's debt from $5 billion to $577 million
  

Almost everyday this week we saw the IMF and world leaders endorse parts of our Covid-19 plans to lift the vulnerable and protect all of us from financial crisis. After weeks of preparation and engagement, Jubilee USA's leadership sent a three page letter outlining a detailed global coronavirus plan to bolster healthcare in the developing world by canceling debt and delivering aid, mobilize additional resources to help all countries prevent financial crisis, use debt moratoriums and better debt restructuring to help countries in distress and raise revenues by curbing corruption, tax evasion and risky market behavior. By Tuesday, you were signing our action alert and sending additional messages to the IMF. While we are winning - we still have more goals we need to move forward right away in our coronavirus fight - so if you haven't signed our petition to the IMF, please sign it now. African Finance Ministers were demanding to stop paying debt to free up $44 billion to fight the virus and Ecuador's congress was raising the alarm on debt payments.

On Wednesday the IMF and World Bank were repeating our calls to the G20 and wealthy countries to stop collecting debt payments because of the coronavirus emergency. The IMF and World Bank wanted debt payments suspended for the world's 76 poorest countries. More than 65% of those who live in extreme poverty call these 76 countries home. In the midst of this, Somalia's debt relief plan was made official. Then on Thursday, President Trump and the G20 had a virtual meeting and discussed parts of our emergency Jubilee USA Covid-19 plan.

Today the Miami Herald did a feature article with Jubilee's Executive Director Eric LeCompte on what our Jubilee Covid-19 plan means for the Caribbean and Latin America.

Just hours ago, the IMF leadership announced more good results from our campaigning. In a statement that was magnified in a press conference from IMF head Kristalina Georgieva, the Fund agreed to debt relief for poor countries and committed to doubling lending resources as 80 countries are requesting emergency financing.

Eric LeCompte's reactions to today's IMF press conference are featured in thousands of newspapers around the world today - read our views in the New York Times and Associated Press.

The Catastrophe Containment and Relief Trust is our debt relief mechanism that can offer debt relief and healthcare grants for poor countries. The mechanism was last used to relieve debt and deliver healthcare grants to Liberia, Sierra Leone and Guinea during the 2014 Ebola epidemic. In 2014, Jubilee USA and our Executive Director, worked with the White House, US Treasury, IMF and G20 to create the Ebola debt relief mechanism. Now that mechanism is being used for the poorest countries as they fight the coronavirus.

Our coronavirus campaigns are just getting going to lift the vulnerable and protect all of us from financial crisis. If you signed our petition, please share it with your friends, family and community.

Donations to support our coronavirus campaigns are doubled now and urgently needed so we can continue this work. Whether you make a gift of $5 or $500, your contribution is tax-deductible and needed and goes directly to supporting our coronavirus work.

We are so grateful to work on these critical efforts with you.

In hope,

Kate Zeller
Campaigns Director

Twitter: @katejbu
https://jubileeusa.org/support-us

P.s. In days, we'll release our Jubilee USA coronavirus action report. Please be on the look out for it and please consider a tax-deductible gift that will be doubled so we spread and promote our findings.