The Jubilee Blog

Standard and Poor's Declares Argentina Default

by Merry Pham

The ratings agency Standard and Poor's declared Argentina to be in default today after the country failed to reach a negotiated settlement with hold-out creditors. It is Argentina's second default in thirteen years

Eric LeCompte, Executive Director of the religious debt relief group, Jubilee USA Network, releases the following statement:

"It's unfortunate that it came to this. Argentina decided it was better to default than to settle. Argentina will likely find alternatives now to pay the restructured bond holders.

"Because of the precedent this case sets there are a lot of losers and few winners. Legitimate investors and poor people lose the most. Argentina never would have defaulted and hold-outs would have been forced to sit at the table if we had an international bankruptcy process in place. In the coming months we'll continue to see the G20 to the IMF try to stop this extreme predatory behavior.

"These predatory actors are only able to operate because our financial system is too much like the wild west."

Read a history and timeline of the case.

Read Jubilee's USA's filing urging the Supreme Court to take case.

Argentina Braces For Default

by Merry Pham

As Argentina approaches the deadline for default, predatory funds and hold-outs may use this court ruling to target Grenada and Democratic Republic of Congo. Argentina is likely to default barring a last-minute breakthrough in negotiations with hold-outs or a court order. Argentina's grace period to pay bonds restructured after its 2001 default expires July 30th. United States District Judge Thomas Griesa ruled Argentina cannot pay the 92% of restructured bond holders unless Argentina also pays hold-out predatory hedge funds in full.

"Argentina is hours from default," said Eric LeCompte, Executive Director of the religious financial reform organization, Jubilee USA Network. "At this point, a deal seems unlikely. Argentina may decide that the cost of default is less than the cost of compliance."

President Obama Nominates Rabbi David Saperstein for Religious Freedom Ambassador

by Merry Pham

Today, there is a different headline to celebrate than the oft-reported theme of religious conflict--a story on interfaith cooperation and religious freedom.

President Obama announced the nomination of Rabbi David Saperstein to the position of Ambassador at Large for International Religious Freedom, Department of State. Saperstein is the director of the Religious Action Center of Reform Judaism (RAC), which is a member of Jubilee USA and a vital partner for ending extreme global poverty. The RAC leads advocacy efforts on behalf of roughly 1.5 million Reform Jews.

Eric LeCompte, Executive Director of the religious anti-poverty organization, Jubilee USA Network, releases the following statement:

"President Obama could not have made a better choice. Rabbi Saperstein is a force for tolerance and justice. We are grateful for his partnership to end extreme poverty and promote democracy."

 

With Obama's announcement and Rabbi Saperstein's work, we applaud the efforts to ensure that public discourse remain focused on interfaith cooperation.

The Philippines: Road to Recovery Swamped by Debt

by Merry Pham

Aerial view of Tacloban after Typhoon Haiyan. Source: Flickr Commons (c) DFID UK Dept. for International Development

Typhoon Haiyan remains fresh in our minds as one of the most devastating natural disasters in our lifetime. The landscape of collapsed homes, mountains of rubble, and splintered trees looked like a scene out of a movie. But for the families who lived through November 8th’s horrific storm, the devastation was undeniably real. Reuters reports that Haiyan had “displaced around 4 million people from their homes, and destroyed 500,000 houses, the United Nations estimates. Damages to infrastructure, hospitals, schools and public services were estimated at $12 billion.”

Faced with these figures and the immediate needs of an entire nation, the international community responded in force. According to the February 2014 Congressional Research Service report: “As of January 31, 2014, international donors have contributed a total of $662.9 million.”

Support from the faith community has also been remarkable. This summer, Vatican officials visited the Philippines ahead of Pope Francis’ own visit planned for January 2015. Manila Archbishop Luis Antonio Cardinal Tagle says that the Pope’s visit will reaffirm the spirit of mercy and compassion, especially in various recovery efforts, encouraging “an act of mercy everyday such as...helping build homes for the typhoon victims.”

How Student Loans went from Opportunity to Debt Burden

by Merry Pham

If there’s one thing that Millenials bring to mind, it’s that we are dreamers. The peaceful “white picket fence” still holds an allure for many: a successful career, a happy family and a stable home. For others, they long to fulfill their passion for creative and fascinating jobs, sports and travel. But Millenials also have quite a damper on their dreams—a storm cloud of student debt that is over $1 trillion. The Federal Reserve of New York details the continual rise of student loan debt nationwide: “At the end of 2003, American students and graduates owed just $253 billion in aggregate debt; by the end of 2013, American students’ debt had ballooned to a total of $1.08 trillion, an increase of over 300%”.

Let’s break this down. According to the Institute for College Access & Success, “seven out of 10 students in the class of 2012 graduated with student loans, and the average amount of debt among students who owed was $29,400.”

The issue of student debt isn’t just about the data. The impact on individual dreams and society as a whole is very real, and it affects everyone. The New York Times asked, “What are the roads not taken because students must take out loans for college?” Unsustainable and unmanageable loans to students are active roadblocks to success when the purpose of loans should be to clear more paths—clear more life-fulfilling options.

Argentina Could Win World Cup But Lost Global Debt Dispute

by Merry Pham

All eyes are on Argentina's soccer team as it prepares to battle Germany in the World Cup finale. On the sidelines, Argentina is embroiled in a debt dispute with so-called "vulture funds" that impacts the Argentine economy and has vast consequences for the global financial system. Argentina faces a July 30th deadline to reach a settlement with a group of hedge funds suing the country for more than $1.5 billion or face default. Argentine officials met yesterday in New York with a court-appointed mediator in an effort to resolve the dispute.

"The World Cup in Brazil is winding down, but the World Cup of debt is just getting started," stated Eric LeCompte, Executive Director of the religious debt relief group, Jubilee USA Network. "Off the field, Argentina is fighting a battle that has vast implications for its economy."

“Love and Taxes” - Renowned Comedian Hosts Benefit Show for Jubilee USA

Comdedian Josh Kornbluth to perform two shows in Northern California.

Jubilee USA is excited to announce the performance of comedian Josh Kornbluth's hit monologue, “Love and Taxes” this summer. Kornbluth will generously donate all proceeds to Jubilee USA in support of the organization’s work to create an international financial system that serves the poor. Josh has worked with Jubilee in the past on issues of corporate tax avoidance, making his show's theme a fitting tribute to that work.

The show will take place at 7 pm on the evening of July 12 at Skyline United Church of Christ in Oakland, CA. A second performance will be held at 7:30 pm on August 6 at Congregation Netivot Shalom in Berkeley.

BUY TICKETS HERE!

Grenada: Spices, beaches, calypso and…debt?

 

By Anya Lewis-Meeks

Grenada, affectionately referred to as the “Spice Island” by its some 100,000 locals, is known for its beautiful beaches, calypso-rich carnival and charming people. Tourism is the primary source of income for most of its residents. However, like several other Caribbean countries, Grenada is crippled by foreign debt. In fact, Grenada is one of four Caribbean countries to restructure its debt in the past year—with Grenada’s public debts being larger than its annual economic output. According to Grenadian Prime Minister Keith Mitchell, public debt concerns have become so large that they are significantly impeding growth and development.

Laos: Debt Poverty is the Flipside of Economic Growth

by Merry Pham

In 1994, Laos ranked as “one of the world’s poorest and most highly indebted poor countries (HIPCs) according to conventional World Bank and donor criteria.” However, the international community’s financial support and Laos’ ambitions to rise to middle income status by 2020 have resulted in significant economic changes. As such, the United Nations Department of Economics and Social Welfare reports that in 2011, Laos rose to low-income country (LIC) category.

This economic growth stems from Laos’ rich natural resources in forestry, agricultural land, hydropower and minerals. Among these, the Mekong River’s hydropower sector has seen the most investment as Laos strives to become the “the battery of Asia.”