For Immediate Release
UN Vote Tuesday Could Create Global Bankruptcy Process, Deter Predatory Funds
WASHINGTON - The UN General Assembly votes Tuesday at 3pm (EDT) on a resolution that could create a global bankruptcy mechanism. Such a process could protect poor countries from predatory funds and limit future defaults. Jubilee USA's leadership, a group of religious leaders and financial experts sent a letter to United States UN Ambassador Samantha Power urging her to support the resolution.
"There's global consensus to stop predatory behavior," noted Eric LeCompte,
Jubilee USA's Executive Director who signed the letter. "This resolution is an opportunity to turn consensus into action. A process could begin that allows us to challenge inequality and have real stability."
LeCompte serves on UN expert groups developing a sovereign debt resolution process.
The resolution comes in the wake of Argentina's legal dispute with predatory hedge funds and hold-out investors. During the course of that dispute, the International Monetary Fund, US Government, United Nations and World Bank all expressed concern that a legal victory for predatory funds would make debt restructurings more difficult. The UN action also follows a proposal from the International Capital Market Association to alter debt rules to curb predatory behavior.
Read Jubilee USA's letter to Ambassador Power here.
Read the Proposed UN Resolution here.
Jubilee USA Network is an alliance of more than 80 religious denominations and faith communities, human rights, environmental, labor, and community groups working for the definitive cancellation of crushing debts to fight poverty and injustice in Asia, Africa, and Latin America.