The Jubilee Blog

The Fed and Central Banks Seek Cure for COVID-hit Economy

On August 27 and 28, the US Federal Reserve and other government central banks meet for their annual retreat. Traditionally held in the picturesque location of Jackson Hole, Wyoming, this year the meeting will take place virtually under the theme “Navigating the decade ahead: Implications for monetary policy.”

“Government banks are grappling with a global economy projected to worsen,” said Eric LeCompte, the Executive Director of Jubilee USA Network. “The meeting will give us a view of what role central bankers wish to play in the battle against the economic impacts of the coronavirus.”

The global economy is expected to contract by almost 5%. Emerging market and developing economies already held historically high levels of debt before the COVID-related crisis. Latin America is expected to contract about 10%.

These economic forecasts translate to United Nations projections that poverty will increase for the first time in 20 years. Ultimately, more than 130 million people will fall into extreme poverty during the next decade.

“The fate of the economy and global poverty levels are intertwined,” said LeCompte.

Over 20 State Attorneys General Call for Shell Company Transparency

By Lydia Andrews

24 State Attorneys General wrote to Congress supporting action to disclose the actual owner of a shell company to law enforcement. "Anonymous" shell companies can be used to hide the identity of the owner.

"Shell companies are used by corrupt government officials to steal money from their people and hide the identities of people involved in the modern day human slave trade," stated Jubilee USA Executive Director Eric LeCompte who serves on United Nations financial expert groups.

The Attorneys General letter raises concerns of how shell companies are sometimes used. "The use of anonymous shell companies by those engaged in human trafficking, drug dealing, and other crimes, allows criminals to launder and spend money attained through criminal activity without accountability," wrote the Attorneys General.

"Shell companies provide vehicles for tax evasion and corruption that contribute to an annual trillion dollar loss to developing world," said LeCompte.

 

Senate Passes Puerto Rico Nutritional Assistance in Farm Bill

Puerto Rico Housing Assistance Fails in Senate

The US Senate voted for Puerto Rico disaster relief in the form of food assistance with the passage of the "Farm Bill." The Agriculture and Nutrition Act of 2018 included Senators Marco Rubio and Kirsten Gillibrand's amendment to fund Puerto Rico's Nutritional Assistance Program. 

“More than 700,000 people in Puerto Rico will benefit from the amendment from Senators Rubio and Gillibrand in the Farm Bill," noted Eric LeCompte, Executive Director of Jubilee USA. LeCompte's organization lobbied Congress on the amendment and issued an action alert to secure support for the amendment. “The hurricanes pushed more than half of the island's people into poverty. The food assistance passed in the Senate is urgently needed."

Senators Rubio and Gillibrand introduced the nutritional assistance amendment to the Farm Bill that allows up to $635 million to be spent on Puerto Rico's version of SNAP or the Supplemental Nutrition Assistance Program.

A bill proposed by Senator Bill Nelson of Florida to extend FEMA housing assistance was blocked in the Senate ahead of Thursday's Farm Bill vote. Nelson's Disaster Housing Assistance Act, S2880, sought to establish a pilot program for long-term rental assistance for families affected by natural disasters. FEMA housing assistance will end tomorrow, June 30.

"US citizens continue to suffer across Puerto Rico. The hurricanes ravaged an island already suffering from a severe debt crisis," said LeCompte. "Congress needs to stop petty debates and get relief aid as quickly as possible to the people suffering on the island."

The House passed their version of the agriculture bill last week. A Senate and House conference committee will reconcile the differences between the two bills before it heads to President Trump's desk.

Read Jubilee USA's Puerto Rico Farm Bill Action Alert

Proyecto de ley del Senado DE EE.UU. le ofrece a Puerto Rico un alivio en su deuda

Una legislación nueva del Senado de EE.UU. le ofrece opciones más a Puerto Rico para recortar su deuda. Los senadores Elizabeth Warren (D-MA), Bernie Sanders (I-VT), Kirsten Gillibrand (D-NY), Ed Markey (D-MA) and Kamala Harris (D-CA) presentaron el proyecto de ley intitulado “Ley para el Alivio a Territorios de EE.UU.”. Si el Congreso de EE.UU. aprobara esta ley, los territorios de los EE.UU. que hayan experimentado un desastre natural, podrían cualificar para recibir un alivio en su deuda.

“Puerto Rico continúa luchando con los resultados causados por los huracanes Irma y María” señaló Roberto O González Nieves, OFM, Arzobispo Metropolitano de San Juan de Puerto Rico. “El impacto de los huracanes fue más agudo en la isla por la la crisis de la deuda pública y las políticas de austeridad fiscal implantadas. Legislación como la presentada en este proyecto de ley, puede proveernos más opciones para obtener un alivio en nuestra deuda y a su vez proveer un incremento en la transparencia en las finanzas públicas de nuestra isla”.

El proyecto de ley también crea una comisión para auditar la deuda, de modo tal, que se puedan identificar las causas de esta última.  Territorios de EE.UU., como por ejemplo Puesto Rico, podrían cualificar para el alivio en su deuda, si dos de los siguientes tres criterios se cumplen. Veamos. Primero, si el territorio ha sufrido una disminución en su población. Segundo, si se encuentra recibiendo ayuda federal para desastres naturales. Tercero, si el total de la deuda por persona excede los $15,000. 

Tanto Puerto Rico como las Islas Vírgenes probablemente cumplen con los requisitos de elegibilidad del proyecto de ley del Senado de EE.UU.  

“Más allá del alivio en su deuda, tanto Puerto Rico como las Islas Vírgenes, necesitan que el Congreso autorice más fondos de ayuda para desastres, para poder reconstruir una infraestructura capaz de soportar tormentas futuras” señaló Eric LeCompte, Director Ejecutivo de Jubilee USA. LeCompte también funge como experto en deuda pública para las Naciones Unidas y a su vez colabora con líderes religiosos de Puerto Rico en busca de una solución para la crisis de la deuda publica en la isla. “Sin un recorte significativo de la deuda publica de Puerto Rico, la esperanza para reducir la alta tasa de pobreza infantil en la isla es muy poca, no menos importante, tan poco se podría alcanzar un crecimiento económico sustentable”. 

Lea la “Ley para el Alivio a Territorios de EE.UU 2018”

Read this release in English

Senate Bill Offers Debt Relief for Puerto Rico

New Senate legislation offers additional options for Puerto Rico to cut its debt. Senators Elizabeth Warren (D-MA), Bernie Sanders (I-VT), Kirsten Gillibrand (D-NY), Ed Markey (D-MA) and Kamala Harris (D-CA) introduced the US Territorial Relief Act. If Congress passes the act, US Territories that experience natural disasters could qualify for debt relief.

"Puerto Rico continues to struggle with the aftermath of Hurricanes Maria and Irma," noted Puerto Rico Archbishop Roberto González Nieves. "The hurricanes were made worse by debt crisis and austerity policies. Legislation such as this, can provide us more options for debt relief and greater transparency in the finances of our island."

The bill also creates an audit commission to study the causes of the debt. US Territories, like Puerto Rico, would qualify for relief if two of three criteria are met. The specific criteria refer to population decrease, receiving federal disaster aid and the total debt per person exceeds $15,000.

 
Both Puerto Rico and the US Virgin Islands likely meet the Senate Bill's eligibility requirements.

“Beyond debt relief, Puerto Rico and the US Virgin Islands still need Congress to authorize more disaster aid to rebuild to withstand the coming storms," stated Jubilee USA Executive Director Eric LeCompte. LeCompte serves on United Nation debt expert groups and works with Puerto Rico religious leaders on resolving the debt crisis. "Without seriously cutting Puerto Rico's debt there is little hope for reducing the high child poverty rate, let alone seeing sustainable economic growth."

Read the U.S. Territorial Relief Act of 2018 

Lea este comunicado de prensa en​ ​español

Call Senate for Puerto Rico Food Assistance

The Senate is about to vote on a Puerto Rico amendment to the 2018 Farm Bill. We need you to make a quick call to your Senators now.

Please urgently call your Senators and ask them to support Senators Marco Rubio and Kirsten Gillibrand’s Farm Bill amendment to extend special disaster aid for nearly 700,000 vulnerable people across Puerto Rico.‎

Since hurricane Maria, overall poverty rates have grown beyond half of the island's population. Nearly 60 percent of children in Puerto Rico live in poverty.

Senators Rubio and Gillibrand introduced a disaster relief amendment to the Farm Bill that allows up to $635 million to be spent on Puerto Rico's version of SNAP or the Supplemental Nutrition Assistance Program.

Already this year because of your actions, we've won more than $30 Billion in recovery aid and provisions for Puerto Rico to rebuild to withstand future storms. For the last several years, we've moved forward measures for debt relief. Now as we move debt relief forward, this amendment helps us pull back some of the impacts of austerity policies.

Call your Senators now and ask them to support Senator Rubio and Gillibrand’s amendment to secure nutritional assistance for the most vulnerable people in Puerto Rico.

The Farm Bill is moving fast. Please call the Senate now.

Thanks,

Kate

European Finance Ministers Applaud Greece Debt Deal that Provides Aid and Continues Austerity

European Finance Ministers endorse a new Greece debt agreement that provides financing in exchange for maintaining austerity policies and economic reforms.

“Parts of the Greece deal provide more breathing space for Greece in the short-term, but we are still concerned that there isn't enough debt relief to keep Greece out of trouble for the long-term," stated Jubilee USA Executive Director Eric LeCompte, who monitors and works on international debt agreements. "I'm also worried that the continued austerity policies hurt too many Greeks and will negatively impact economic growth."

While the International Monetary Fund's Christine LaGarde supports the deal, she raised concerns about the deal's ability to achieve sustainability for the Greek economy.

Eric LeCompte Quoted in Politico on Disaster Recovery

By Lydia Andrews 

Eric LeCompte, Executive Director of Jubilee USA was recently quoted in Politico speaking about transparency in disaster recovery efforts in Puerto Rico. Read excerpt below and follow link to full article.

Zinke's political ties to Virgin Islands improved Interior's hurricane response, party boss says

By Ben Lefebvre

Disaster response experts say it would be inappropriate for Canegata's political connections to influence Interior's efforts in the Virgin Islands.

“These are processes that are supposed to be transparent and supposed to be above the board,” said Eric LeCompte, executive director of Jubilee USA, an anti-poverty group that has been involved in hurricane disaster relief efforts. “So, it would not be something a political party would be part of.”

Read more here. 

Eric LeCompte Featured in The Bond Buyer

By Lydia Andrews 

Eric LeCompte, Executive Director of Jubilee USA was recently highlighted in The Bond Buyer speaking on emergency relief funds, the bankruptcy process and recovery efforts in Puerto Rico. Read excerpt below and follow link to full article.

Puerto Rico Bond Holders May Have to Wait More than Two Years 

By Robert Slavin

Some observers, including Jubilee USA Network executive director Eric LeCompte and Council on Foreign Relation Senior Fellow Brad Setser, said the bankruptcy’s progress was reasonable considering the impact of Hurricanes Irma and Maria.

PROMESA “gave Puerto Rico some breathing space by allowing for a debt payment moratorium and preventing creditor litigation," LeCompte said. "PROMESA allowed Puerto Rico to default and made it disadvantageous for new predatory creditors to buy the debt. Finally, the legislation created a super bankruptcy process that is capable of restructuring all of Puerto Rico’s debt.”

LeCompte said PROMESA is the “first comprehensive debt restructuring process since the 1953 London Accord that restructured all of Germany’s debt.” He explained that by this he meant that it was the first time since the London Accord that both state-level and local government level debt was simultaneously restructured.

Read more here.

 

Religious Leaders Letter on NAFTA highlighted by CNS and Crux

By Lydia Andrews 

Catholic News Service and Crux featured articles on the statement issued this week by Jubilee USA and religious leaders on NAFTA and access to medicines in trade agreements.

Read excerpt below and follow link to the full Crux and Catholic News Service articles. 

Religious leaders say new NAFTA shouldn't restrict access to medicines 

Archbishop Timothy P. Broglio of the U.S. Archdiocese for the Military Services was one of seven U.S. religious leaders asking that any new North American Free Trade Agreement “avoid enhanced and extended monopolies on life-essential medicines.”

The May 18 letter, sent to President Donald Trump, administration officials and members of Congress, added: “Our faith traditions call us to care for the sick and respond to the needs of the poor in our societies. Trade agreements can have enormous impacts on the ability of the sick and the poor to access the medicines they need for healing and even survival.”

“We agree with the provisions of the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights, currently in effect in all NAFTA countries. The TRIPS agreement calls for respect of intellectual property rights, including those for medicines,” the letter said.

“Crucially, as was underscored by the Doha Declaration on TRIPS and Public Health, it also recognizes each nation’s right to take necessary steps to ensure that medicines are available to all of their residents.”

“This ‘May 10th Agreement’ recognizes the flexibility in intellectual property rights provisions with regard to pharmaceuticals that developing countries sometimes need in order to serve the public health needs of their people,” the letter said. “We hope our political leaders can come together once again on these principles in support of the most vulnerable.”

“We ask that a renegotiated NAFTA reaffirm the TRIPS public health protections that enable the United States and other countries to promote the human right to health and access to medicines for all,” it added.