The Jubilee Blog

IMF Proposes $50 Billion Vaccine Plan to End Pandemic and Boost Economy

By Zachary Conti

As worldwide COVID cases peak, IMF chief Kristalina Georgieva unveiled a $50 billion proposal to support vaccinations of 60% of the world's population. During a G20 and European Commission summit, Georgieva argued the global vaccine investment would end the pandemic and spur $9 trillion in economic gains by 2025.

"Economic forecasts for most countries are grim,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA. “Unless we can get most of the global population vaccinated quickly, most countries will be worse off in coming years and all countries are likely to face economic shocks.”

The IMF says their vaccine plan could be funded through public and private donations and cheap loans.

In April, the IMF and G20 supported the creation of $650 billion in global reserve funds, known as Special Drawing Rights. Up to $400 billion of these pandemic crisis response funds could be donated to support additional needs of developing countries.

“Rich countries can donate their new reserve funds or Special Drawing Rights to support vaccine distribution in developing countries,” shared LeCompte. "It's critical that wealthy countries act now and support global vaccinations. If we don't act, more lives will be lost and the global economy will suffer."

IMF Approves Sudan Debt Relief Plan

On Monday, the International Monetary Fund approved a plan to pay for Sudan's debt owed to the financial institution. Using grants and internal resources, IMF leadership agreed to clear $1.3 billion in missed debt payments or arrears.

“The IMF approved an important step in the process for Sudan debt relief,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. "As Sudan wrestles with the pandemic and a 50% poverty rate, debt relief cannot come soon enough."

Sudan is on track to join thirty-seven countries that received debt relief under the Heavily Indebted Poor Countries Initiative, a plan won by debt relief advocates in the early 2000s.

“An important part of Sudan's debt relief process is that Sudan produces a poverty reduction plan," shared LeCompte who serves on United Nations finance expert groups.

If Sudan meets IMF economic reforms and clears remaining missed debt payments, the country could qualify for an 85% reduction of its $50 billion debt by June.

Read about Sudan's debt process and the US role in relief here.

https://www.jubileeusa.org/pr_imf_approves_sudan_debt_relief_plan

Sudan Debt Relief Moves Forward

Under a debt relief plan won by advocates in the early 2000s, Sudan could see a drastic cut in its $50 billion debt this summer, according to the IMF and the World Bank. 

“Sudan’s debts would be cut by 85% under the debt relief plan,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network, which was a major force for the creation of the debt reduction process. “Debt relief cannot come soon enough for Sudan as the country struggles with the pandemic and a 50% poverty rate."

Thirty-seven, out of thirty-nine eligible countries, received debt relief under the Heavily Indebted Poor Countries Initiative or HIPC. In order for Sudan to receive a debt reduction it must meet IMF economic reforms and clear missed debt payments. The United States loaned $1.1 billion to Sudan to clear debt payment arrears to the World Bank and convened creditors to secure debt relief.

"The United States is an important leader in Sudan debt relief and is playing a crucial role in expanding debt relief policies during the pandemic," shared LeCompte, who worked with Republican and Democratic administrations for more than a decade on debt policies. "This relief for Sudan can support economic growth and stabilize a hard-won peace in a country where conflict raged for 17 years."

After Sudan obtains debt relief, Eritrea remains the lone country that could qualify under the HIPC debt relief plan won by Jubilee USA.

https://www.jubileeusa.org/pr_sudan_debt_relief_moves_forward

US Supports Removal of Vaccine Trade Barrier

By: Zachary Conti

As developing countries struggle to access vaccines, the US announced support to eliminate trade barriers on vaccine access. In a statement Wednesday, the Biden Administration called for a waiver on COVID-19 vaccine intellectual property patents at the World Trade Organization.

“Less than 2% of vaccines reached poor countries,” said Eric LeCompte, the Executive Director of the religious development organization Jubilee USA Network. "Intellectual property rights prevent developing countries from making their own vaccines or accessing generic versions."

The IMF states that uneven vaccine access is the main cause of global economic uncertainty. 

"When the majority of countries are not accessing vaccines, the virus continues to mutate and could reinfect vaccinated people in wealthy countries," noted LeCompte. "Continuing coronavirus waves, in any part of the world, mean economic shocks from exports and imports for every country."

President Biden pledged $4 billion to a global fund to help poor countries acquire safe and effective vaccines.