The Jubilee Blog

United Nations Commission: Cancel Debt for Ebola-Impacted Countries

Report: West Africa Needs Debt Relief to Address Economic Challenges

By Sophia Har

The United Nations Economic Commission for Africa (UNECA) released a report calling for debt cancellation for Ebola-impacted countries. The new report, "A Case for External Debt Cancellation for Ebola-Affected Countries," calls on multilateral institutions and governments to cancel Liberia, Sierra Leone and Guinea's debts. The report argues debt relief would provide necessary "breathing space" to address the region's economic challenges. All three countries are ranked in the bottom 15 in the United Nations' Human Development Index.

"West Africa needs debt relief," said Eric LeCompte, Executive Director of the debt relief organization Jubilee USA. "Debt relief will not only fight Ebola, it will also provide a long-term investment in healthcare for the countries."

UNECA first called for debt relief in December. In November, the United States government called for $100 million in debt relief and took its plan to the G20. At the request of the G20, the International Monetary Fund (IMF) is currently considering a $300 million financing package that could include debt relief. In January, Guinea President Alpha Conde called for IMF debt relief. Guinea, where the outbreak began, spent more money on debt than on public health in the year before the epidemic began. All three countries have poverty rates above 50%.

Victorious Greek Syriza Party Vows to Halt Austerity

By Sophia Har

The Syriza party won 149 seats in Greece's Parliament and formed a coalition government with the conservative Independent Greeks who won 13 seats. Syriza campaigned on promises to cease austerity measures and renegotiate some of Greece's debt.

"A third of all Greeks live below the poverty line and this was the reality they brought to the voting booths," said Eric LeCompte, Executive Director of the religious financial reform group, Jubilee USA Network.

Syriza opposes austerity measures that were part of the 2010 $147 billion loan deal during the Greek crisis. Since the deal, unemployment more than doubled and today, youth unemployment is at nearly 50%. The Greek economy contracted for five years in a row and Greece lost 400,000 jobs in 2012. Greece's debt burden is the largest in Europe and trails only Japan among developed nations. Syriza has proposed an international debt conference to renegotiate the length of payment terms and reduce the amount of Greek debt.

Interfaith Response to Poverty

As we reflected on the legacy of Dr. Martin Luther King this past weekend, and as news headlines from around the world remind us of the importance of interfaith unity, we remember the remarkable event that Jubilee USA organized last year. Last February, we hosted an event in California in partnership with students from Muslim, Jewish, Christian,Rrepublican and Democratic groups to call for an end to global poverty and for interfaith and bipartisan cooperation in addressing societal issues. Read more about the event below.

Student outreach event unites campus groups in fight against global poverty

By Bo Kovitz

Student and community groups of different ideologies and faiths gathered together in unity to support Jubilee USA Network’s fight against global poverty Wednesday night.

Haiti Marks Deadly Earthquake's Five-Year Anniversary

Mechanism That Cancelled Haitian Debt Post-Earthquake Could Help Ebola-Affected West Africa

by Sophia Har

January 12 marks the five-year anniversary of Haiti's 2010 earthquake. The 7.0 quake killed an estimated 230,000 people, injured 300,000 more and displaced 1.5 million Haitians. The earthquake also took an enormous toll on Haiti's economy. The year before the disaster, Haiti's economy grew 3.5 percent - the year after the quake, its growth was negative 5 percent. Even before the earthquake, Haiti was the poorest country in the Western Hemisphere.

"Too many people died during the earthquake because they lived in unsafe conditions," said Eric LeCompte, Executive Director of the religious development organization Jubilee USA. "This anniversary reminds us that poverty makes natural disasters even more deadly."

In the quake's aftermath, Jubilee USA called on the international community to cancel Haiti's debt. At the time, Haiti owed nearly $1 billion in external debt.

Argentina Debt Resolution Possible As Contract Clauses Expire

Concerns Continue Over Global Impacts of Debt Dispute

by Sophia Har

An Argentina bond contract clause expires on December 31st raising the possibility that hold-out hedge funds and Argentina could settle a long running debt dispute. After defaulting in 2001, Argentina restructured its debt with 92% of its bondholders and put in place the Rights Upon Future Offers or RUFO clause. The RUFO clause gives restructured bondholders the right to a higher settlement if Argentina settles at a higher level with another Argentine bondholder. When the clause expires midnight on Wednesday, Argentina and hold-out funds could reach a settlement that would not leave Argentina open to RUFO clause litigation.

"However this dispute is resolved, we're still concerned about the global implications of this case," said Eric LeCompte, Executive Director of the religious development group Jubilee USA. In the Spring, Jubilee USA filed a US Supreme Court Amicus Brief to inform the high court of the case's impacts on developing economies. "Even if Argentina settles with the hold-outs, this extreme behavior is legitimized."

Jubilee USA's Supreme Court brief explained the case precedent could make it more difficult for poor countries to restructure their debts and equip predatory funds with a tool to collect aid monies. The United States government, G20 and International Monetary Fund expressed similar concerns during the case. The heavily indebted Caribbean island of Grenada currently faces a similar lawsuit in New York courts. A Zambian parliamentarian announced this week that the country's growing debt leaves it vulnerable to "vulture funds." One of these funds sued Zambia in 2005 and was awarded $15 million from monies originally allocated for spending on social needs.

"Very few countries have the resources to resist these predatory funds." said LeCompte, who serves on finance-focused United Nations Expert Groups. "We're worried about how some of the poorest countries in the world are affected."  

Read a timeline and history of the case.

Read more about Zambia's history with predatory hedge funds.

Read Jubilee USA's Supreme Court Brief on the global implications of the case.

Jubilee USA Network is an alliance of more than 75 US organizations and 400 faith communities working with 50 Jubilee global partners. Jubilee's mission is to build an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org