Jubilee USA

For Immediate Release

Organization Profile: 
Contact: 

Kate Zeller, Campaigns Director

kate@jubileeusa.org / (o) (202) 783-3566 x105

IMF Fears Financial Crisis

Argentina, Ecuador and Somalia Debated Behind Closed Doors

WASHINGTON - The International Monetary Fund raises fresh global financial crisis fears as Presidents, Finance Ministers, development groups and business leaders gather for the Annual IMF and World Bank Meetings.

"We are seeing strong warnings of a global financial crisis," shared United Nations finance expert and Jubilee USA Director, Eric LeCompte. Since 2010, LeCompte monitored IMF reports and meetings. "The Fund recommends more transparency around risky investments and corporate and country debts. But these recommendations might be too little and too late."

On Tuesday, the IMF downgraded global economic forecasts, calling the future of the economy, "precarious" and "uncertain," with the release of the 2019 World Economic Outlook Report. On Wednesday, the IMF Global Financial Stability Report issued concerns over high debts and risky investing. The reports raised fears over trade tensions, revenue loss and that developing countries are borrowing too much.

Behind closed doors, IMF leadership debates the failed economic plans of Argentina and Ecuador.

"The IMF got Argentina's debt sustainability wrong and they failed to prevent most of their financing being lost to capital flight," said LeCompte. "In Ecuador there seems to be a disconnect between IMF leadership preaching corporate transparency and IMF technicians advancing austerity and corporate tax cuts."

Beyond the debates, consensus seems to be growing for Somalia debt relief.

"We are optimistic about debt relief for Somalia which is one of world's poorest countries," stated LeCompte who is moderating a High-Level Somalia Annual Meeting Panel. "There seems to be strong support among all stakeholders to alleviate poverty and build a brighter future for Somalia." Read about the World Economic Outlook Report Read about the IMF Global Financial Stability Report Read about the Somalia NGO Consortium and Jubilee USA's Friday High-Level IMF/World Bank event with His Excellency Dr. Abdirahman D. Beileh, Minister of Finance for Somalia, on resolving Somalia's debt and economic crisis here
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Jubilee USA Network is an alliance of more than 75 US organizations and 650 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org

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