The Jubilee Blog

Chad: First Country Requests Debt Relief from G20 Process

By: Zachary Conti

 

Chad became the first country to officially seek debt reduction under a G20-established coronavirus response process. In the fall, the G20 approved the “Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative.” Up to 73 of the world’s poorest countries could seek support under the mechanism.

"This is the first test of the G20 debt reduction process and the process must deliver serious relief for Chad," stated Eric LeCompte, the Executive Director of the religious development group Jubilee USA Network. "Before the coronavirus struck, half of Chad's people lived in poverty and 20% of Chad's kids would never live to their fifth birthday."

Before the G20 authorized the new debt framework, the G20 stopped debt payments for poor countries like Chad. Private creditors and commercial banks refused to stop collecting debt payments as countries suffered from the coronavirus.

“Roughly half of Chad’s debt is in the hands of private creditors,“ noted LeCompte, a UN finance expert. “One of the biggest tests of the new G20 debt reduction process will be whether or not the private sector will be pushed to participate."

 

"Amid Exceptional Uncertainty" IMF Projects Growth for Rich Countries, Challenges for Developing Countries

By Zachary Conti, 

 

The International Monetary Fund released projections on the world economy as countries continue to wrestle with the coronavirus. The Fund's World Economic Outlook Update projects 5.5% global growth in 2021, while noting developing countries face growing problems.

"While the IMF is uncertain in its predictions, it's clear that the developing world is mired in severe challenges due to high debts, few financial resources and lack of access to vaccines," stated Jubilee USA Executive Director Eric LeCompte who has reviewed IMF economic reports for more than a decade.

The update to the IMF's flagship report notes that global growth mostly benefits wealthy and advanced economies. The analysis notes that many developing countries will need debt relief and access to liquidity to get through the crisis.

"Developing countries desperately need debts reduced and access to new financial resources," shared LeCompte, a United Nations finance expert. "In order for people to survive this crisis in the developing world, we need to authorize the use of global reserve funds or what's called Special Drawing Rights."

Special Drawing Rights are likened to a type of emergency currency that the IMF can generate when countries face liquidity challenges.

The IMF raised several cautions about economic projections, including how new strains of the coronavirus could push economic downturns.

Read the latest IMF World Economic Outlook Update here.

High-Level Climate Summit to Launch Action Agenda

By Zachary Conti

World leaders, including Pope Francis, UN General Secretary António Guterres, and the IMF's Kristalina Georgieva, gather for a high-level climate summit hosted by the Netherlands through Tuesday.

"The meeting on addressing climate change is taking place at a critical moment," noted Eric LeCompte, the Executive Director of the religious development group Jubilee USA. "As we confront the economic impacts of the coronavirus, some of the most consequential decisions on climate will be made by the G20 and the IMF."

During the opening session, Kristalina Georgieva offered that the institution she leads, the IMF, would work to ensure a greener and more resilient climate economy.

"I'm heartened to hear that Georgieva and the IMF are including climate in their assessments of countries and their advice for finance ministers," stated LeCompte, a UN expert whose organization is raising alarms about significant climate decisions taking place outside of the United Nations system. "Addressing climate change means urgently addressing the global economic decisions that will increase or reduce climate change."

Our Biden Work, Student Debt Victory!

By Zachary Conti, 

Our many efforts with the new Biden Administration are moving forward very, very quickly.

Today - after his inauguration, one of the first executive orders that President Biden will issue, is to extend our student debt payment suspension through September. The action will benefit 45 million Americans and ease the suffering too many feel because of the coronavirus economic crisis. Biden also supports Jubilee USA's proposals for student debt cancellation.

Right after the election, Jubilee USA began high-level meetings with the Biden Transition Team. We invited several of our founding national religious institutions to sit with us and the Biden Transition Team leaders for International Treasury, Domestic Treasury, the US Trade Representative, Puerto Rico, the Securities and Exchange Commission and Federal Reserve, Bank and Financial Regulation.

During our Biden meetings we covered all of our efforts to address inequality, end poverty, coronavirus response and stopping financial crises. 

The issues we worked on with Biden's team include: student debt, stimulus plans, trade agreements and access to medicine, debt relief and global bankruptcy, accessing global reserve funds (Special Drawing Rights), climate finance, tax evasion and corruption, Puerto Rico, G7/G20 emergency actions, responsible lending, financial stability, universal basic income, development aid, US and international child poverty reduction and much, much more.

Read and share our initial Biden Transition Team memo about all of our efforts to win a Jubilee across the United States and around the world.

Your partnership and actions are crucial in the coming weeks and months. In recent months your actions propelled and won some of our coronavirus response campaigns, Puerto Rico disaster aid, student debt relief and passing Jubilee's Corporate Transparency Act. Together, we organized hundreds of religious communities and the largest faith, labor, environmental and human right groups on our coronavirus response efforts. Your actions moved the Trump Administration to take stronger positions on debt relief than any other G20 country.

Our bipartisan and interfaith efforts, together, are critical so our country, world and planet emerge from the coronavirus crises with resilience - a world where we all have enough and can live in dignity.

President Biden Extends Student Loan Payment Freeze

By Zachary Conti

President Biden will extend the freeze on student debt payments as one of his first executive actions after his inauguration. The Department of Education will be directed to continue the student debt payment suspension through September.

“Extending the suspension of student loan payments translates to relief for millions of people suffering from the crisis,” said Jubilee USA Executive Director Eric LeCompte, whose organization pressed Congress and the Trump Administration on initial student debt relief actions.

Forty-five million Americans holding student debt will benefit from Biden's executive order. Last spring, the CARES Act stimulus package suspended student debt payments until September of 2020, a measure the Trump White House extended twice but was due to expire on Thursday. 

"Suspending student debt payments is a necessary first step," stated LeCompte. "I'm grateful that President Biden already supports additional proposals for student debt cancellation."

In addition to student loan payment relief, Biden will sign 14 additional executive actions during his first day in office.

White House Announces Puerto Rico Disaster Rebuilding Aid

By: Zachary Conti

The White House announced a $3.7 billion disaster grant for Puerto Rico to rebuild reservoirs, dams, and wastewater facilities.

“Puerto Rico suffers from a debt crisis and is still recovering from hurricanes and earthquakes,” said Eric LeCompte, the Executive Director of Jubilee USA Network, a religious development organization. "The aid is vital as Puerto Rico needs to rebuild infrastructure damaged by disasters."

As earthquakes continue to shake the US Territory, the island feels the aftermath of Hurricanes Irma and Maria which hit Puerto Rico three years ago with an estimated $100 billion in damages.

According to the White House, the new grant award from the Federal Emergency Management Administration brings total hurricane recovery funds to $40 billion. In July, Puerto Rico religious leaders wrote Congress citing the need for an additional $60 billion in recovery aid. The letter was signed by the leaders from Catholic, Methodist, Lutheran, Christian (Disciples) and Evangelical Churches, the Puerto Rico Council of Churches, Catholic Charities (Caritas), and the Puerto Rico General Bible Society.

Read the Jubilee Puerto Rico Religious Leader Letter to Congress here.