The Jubilee Blog

African Religious Organizations Call for Tripling Size of Vulnerable Countries Fund

Kenya President Ruto Hosts Heads of State and World Leaders for Aid Negotiations

The World Bank program that provides aid to poor countries should triple funding by 2030, said interfaith African organizations in a statement addressed to leaders meeting in Nairobi. On April 29th, the President of Kenya, William Ruto, hosts International Development Association (IDA) for Africa Heads of State Summit to mobilize funding for IDA. As the largest source of grants and low-cost, long-term loans to the poorest countries, IDA enables recipients to spend on poverty reduction and development priorities without adding to debt burdens.

“Countries in Africa, home to most of the IDA borrowers, spend three times servicing debt what they spend on health,” said Caritas Africa, the All Africa Conference of Churches, Islamic Relief and Jubilee USA Network in a statement. “In this region, which year after year sees the growing devastation of droughts, cyclones, land degradation and other effects of climate change, debt service amounts to 18 times their climate adaptation expenses.”

Negotiations with donors for replenishing the IDA aid program come to conclusion at the end of the year. IDA negotiates with donors and replenishes the aid resources every three years.

“Amidst staggering debt levels, IDA is the largest provider of funds that can help countries without creating more debt,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network, one of the organizations signing the statement. “Dramatically boosting IDA funds can address growing crises in some of the poorest countries.”

Average incomes in one-third of IDA countries remain below pre-pandemic levels. The last replenishment, finalized in 2021, generated $93 billion over the 2022-2025 period. However, IDA borrows the bulk of those resources from private markets, whereas donor contributions have dropped for the last 10 years.

Read the Caritas Africa, All Africa Conference of Churches, Islamic Relief and Jubilee USA Network Statement to Leaders Meeting in Nairobi for the International Development Association Heads of State Summit here.

World Leaders Meet for Spring IMF, World Bank and G20 Meetings

World leaders, finance ministers, business groups, academics and development organizations attend the Spring IMF, World Bank and G20 meetings.

“Debt, climate issues and poor economic growth top the agenda during these meetings,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “We've seen some progress on debt challenges during the meetings."

On Tuesday, the IMF's Executive Board approved new policies on debt in “Policy Reform Proposals to Promote the Fund’s Capacity to Support Countries Undertaking Debt Restructurings.” 

"The IMF leadership endorsed some important proposals that introduce more predictability, transparency and certainty in debt restructurings, financing and negotiations," noted LeCompte who is attending the meetings. "Debt crises are hurting the global economy and it's urgent we continue to improve processes for debt relief and foster positive investment in developing countries."

Read the IMF policy paper: Policy Reform Proposals To Promote The Fund’s Capacity To Support Countries Undertaking Debt Restructuring here.

Find Jubilee USA's press release on the G20 Finance ministers and Central Bank governors' meeting here.

Read Jubilee USA's statement on the IMF World Economic Outlook report here. 

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain raiser speech here. 

Read Jubilee USA's press release on the G20 February Finance ministers meeting here. 

World Leaders Meet for Spring IMF, World Bank and G20 Meetings

World leaders, finance ministers, business groups, academics and development organizations attend the Spring IMF, World Bank and G20 meetings.

“Debt, climate issues and poor economic growth top the agenda during these meetings,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “We've seen some progress on debt challenges during the meetings."

On Tuesday, the IMF's Executive Board approved new policies on debt in “Policy Reform Proposals to Promote the Fund’s Capacity to Support Countries Undertaking Debt Restructurings.” 

"The IMF leadership endorsed some important proposals that introduce more predictability, transparency and certainty in debt restructurings, financing and negotiations," noted LeCompte who is attending the meetings. "Debt crises are hurting the global economy and it's urgent we continue to improve processes for debt relief and foster positive investment in developing countries."

Read the IMF policy paper: Policy Reform Proposals To Promote The Fund’s Capacity To Support Countries Undertaking Debt Restructuring here.

Find Jubilee USA's press release on the G20 Finance ministers and Central Bank governors' meeting here.

Read Jubilee USA's statement on the IMF World Economic Outlook report here. 

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain raiser speech here. 

Read Jubilee USA's press release on the G20 February Finance ministers meeting here. 

Jubilee USA Statement on IMF World Economic Outlook Report

As world leaders arrive in Washington, DC for the Spring IMF and World Bank Meetings, the IMF releases its flagship World Economic Outlook report. 

Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert who monitored IMF meetings since 2010, releases the following statement on the IMF Meetings and World Economic Outlook Report:

“Five years after the pandemic began, the IMF forecasts weak global growth for the next five years.

"In addition to the suffering caused by wars and conflicts, it is more difficult to have accurate economic outlook predictions.

“High debt levels across developing countries and the lack of debt relief means we can't achieve a strong global economy."

Read the full World Economic Outlook Report here.

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain raiser speech here. 

IMF Chief Warns of Debt Payments in Low-Income Countries Ahead of IMF, World Bank and G20 Meetings

Global Economic Losses Since Dawn of Pandemic Hit $3.3 Trillion

Since 2020, the global economy lost $3.3 trillion. The loss affected the most vulnerable countries hardest noted International Monetary Fund chief Kristalina Georgieva. Delivering her curtain raiser speech ahead of the IMF, World Bank and G20 Spring meetings, she stated debt remains at high levels in most countries, with the poorest countries spending more than 14% of their budgets on debt payments.

"Debt continues to be one of the primary concerns for developing countries," said Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network. "Georgieva points out that debt will continue to be a stumbling block for too many countries."

Debts had increased for more than a decade and the necessary spending to protect lives and jobs during the pandemic added to the trend according to Georgieva.

"The poorest countries saw the biggest losses from the pandemic," remarked LeCompte. "While some countries are recovering, many developing countries are still worse off than they were before the pandemic."

According to the IMF head, interest rate hikes are pushing up higher debt servicing costs.

"It is time to cut interest rates," shared LeCompte. "Interest rates are making debts soar for poor countries and pricing food and fuel out of reach for too many of us."

The curtain raiser speech calls for budget cuts as one of the tools to stabilize debt. However, a year ago the IMF flagship World Economic Outlook found that spending reductions had little effect on reducing debt, while debt restructurings had achieved debt reductions of 8 percentage points in the medium term.

“There are a number of countries where debt relief is the best option to quickly restart their economies and build economic growth,” shared LeCompte.  

Watch the curtain-raiser speech here.