The Jubilee Blog

Jubilee USA Honors Chairman Spencer Bachus for Debt Relief Efforts

Representative Bachus speaking at the Capitol event

by Greg Williams

Jubilee USA honored House Financial Services Committee Chairman Emeritus Spencer Bachus (R-AL) at a November 10 evening event in the US Capitol. Bachus was a key architect of bipartisan legislation and policies that resulted in international debt relief that has been used to improve living conditions and promote civil stability in poor countries.

"Spencer Bachus saw an opportunity to make the financial system work better for even the poorest of people," stated Eric LeCompte, executive director of Jubilee USA, the group that organized the event. "Across Africa, millions of kids are in school and millions more are alive because of his efforts."

Bachus played a key role in passing landmark legislation supporting the Heavily Indebted Poor Country Initiative and Multilateral Debt Relief Initiative. These global efforts reduced or cancelled debts that had often been incurred by former dictators who squandered the original loans. Countries were subsequently able to invest in better health care and education for their citizens so long as they met new international accountability standards.

The World Bank reports that infant mortality rates declined in every country that received debt relief. World Bank President Jim Kim noted in 2014 that the Jubilee debt relief initiative was one of the two most important factors fueling unexpected economic growth in Africa. The rock star Bono said, "As a result of debt relief, there are millions of children attending schools today, there are millions of children who have received vaccinations."

In introducing Mr. Bachus at the event, David Beckmann, President of the Christian anti-hunger group Bread for the World, said, "His leadership forges alliances, alliances that were essential to advancing policies that end hunger and reduce poverty."

Rep. Bachus retired at the end of his term in 2014, completing a 22 year record of service in the U.S. House.  His colleagues named him Chairman Emeritus of the House Financial Services Committee, where he served a six-year leadership term that included his Chairmanship from 2011-2012.

Read more about the event honoring Chairman Spencer Bachus

Read Chairman Bachus' speech on the floor of Congress calling for debt relief for poor countries

An Uncertain Future for the Consumer Financial Protection Bureau

By Greg Williams

The future of a federal consumer watchdog agency is uncertain amidst pledges to reduce the agency. Congress created the Consumer Financial Protection Bureau as part of the bipartisan 2010 Dodd-Frank Wall Street Reform Act. The Bureau issues regulations regarding "payday" loans, student loans, credit cards and mortgages. Congress is expected to pass legislation reforming the Bureau's structure and authority next year.

"The Consumer Financial Protection Bureau does important work to protect the vulnerable from predatory lending," noted Eric LeCompte, executive director of the religious anti-poverty coalition Jubilee USA.
 

In September, the House Financial Services Committee supported efforts to restrict the Bureau's power. It's unclear whether a new Congress or Administration would support additional legislative measures to reform the agency.

The Bureau issued draft regulations on payday loans or‎ high-interest short-term loans that affect low-income communities. The draft regulations include limits on the number of consecutive loans a consumer can borrow and measures to limit payday lenders' ability to withdraw money directly from borrowers' bank accounts without permission. Democrats and Republicans in Congress have challenged the Bureau's efforts to limit payday loans. The Consumer Protection and Choice Act, introduced in November of 2015, would delay the Bureau's pending payday regulations by two years and is co-sponsored by two dozen members from both parties.

"Responsible lending and borrowing is critical for the health of communities and families," stated LeCompte. LeCompte submitted comments to the Bureau urging it to strengthen its proposed regulations. "Some payday loans are simply predatory and consumers need basic protections."

 

Read Jubilee USA's submission to the Consumer Financial Protection Bureau in response to its proposed payday regulations

Read more about the Consumer Financial Protection Bureau's proposed payday lending regulations

Puerto Rico's Governor Refuses to Submit Revised Fiscal Plan

By Greg Williams

Puerto Rico Governor Alejandro García Padilla declined a new federal oversight board's request that he submit an updated fiscal plan for the island. Under Congressional legislation passed in June, the board has the authority to approve or reject the Governor's fiscal plan. The board requested a revised plan after various stakeholders and civil groups testified about the merits of the plan to the board last week. According to the Associated Press, Governor García refused to rework the plan, arguing the board needs to restructure Puerto Rico's debt to avoid cuts to basic government services. It's not clear what the consequences of the Governor's decision will be.

Jubilee USA Addresses Third Meeting of Puerto Rico "Control" Board

 By Greg Williams

Jubilee Executive Director Eric LeCompte addressing the Financial Oversight and Management Board of Puerto Rico

The Puerto Rico Financial Oversight and Management Board holds its third meeting at the El Conquistador Resort, Fajardo, Puerto Rico. This is the first time the "control" Board meets on the island. The board will discuss Puerto Rico Governor Alejandro Garcia Padilla's recently released fiscal plan. The board has the authority to approve or reject the Governor's plan, which calls for government reform, infrastructure investment and minimal cuts to social services. Congress created the board as part of legislation passed in June to address Puerto Rico's ongoing debt and fiscal crisis. 

"The crisis is getting worse in Puerto Rico," noted Eric LeCompte, who presented public testimony to the board and is the executive director of the religious development coalition Jubilee USA. LeCompte serves on various United Nation debt expert groups. "Debt restructuring is the key to ending this crisis and the clock is ticking."

LeCompte urged the board to pursue comprehensive debt restructuring to combat poverty, grow the economy and protect the island's investors. He noted that Puerto Rico's economy is vulnerable to external shocks and urged the board to support a "Hurricane Clause" to temporarily halt debt payments in the event of unforeseen crisis.‎ LeCompte further recommended the board consider new bonds linked to economic growth on the island.

Jubilee USA's director closed his comments by reading a statement from Monsignor Roberto González Nieves, Archbishop of San Juan de Puerto Rico and Reverend Heriberto Martínez, General Secretary of Puerto Rico’s Bible Society. These religious leaders are at the forefront of defending vulnerable communities as the crisis continues to unfold.

"We believe that any plans, policies and debt restructurings must be judged in view of how they will impact vulnerable populations," LeCompte told the board. "Those who did nothing to create this crisis are bearing the brunt of some of the worst aspects of the crisis."

 

Read Eric LeCompte's address to the Fiscal Oversight and Management Board of Puerto Rico

Watch a video of the address

 

Read more about the Fiscal Oversight and Management Board of Puerto Rico