Jubilee USA

For Immediate Release

Organization Profile: 

Amidst Covid-19 Spread, IMF and World Bank Signal Debt Relief for Poor Countries

Developing Countries Demand Debt Payments Stop

WASHINGTON - On Monday the heads of the IMF and World Bank stated support for debt relief for very poor countries as the coronavirus spreads. African Finance Ministers called for suspension of debt payments to free up $44 billion to fight Covid-19. Ecuador's Congress also demanded its government stop paying debt.

"Countries need to prioritize fighting Covid-19 and billions can be freed up right away by halting debt payments," stated Eric LeCompte who leads the development group Jubilee USA and serves on United Nations debt expert groups. "Both among lenders and borrowers, we see growing calls to stop paying debt to save lives during the pandemic."

At G20 Finance Minister and Central Bank meetings on Monday, World Bank President David Malpass encouraged world leaders to allow very poor countries to stop paying debt. At the same meeting, the IMF's leader, Kristalina Georgieva noted the replenishing of funds in an IMF debt relief and aid mechanism that was used during the 2014 Ebola epidemic that struck 3 African countries.

"The IMF and World Bank calls for debt relief are critical in order to immediately strengthen health systems in the developing world," stated LeCompte. "In order to support all countries who need help and stop a global financial crisis we will need to broaden debt relief efforts, raise aid monies and move forward agreements that can stabilize the economy."

The leaders of LeCompte's organization, Jubilee USA, sent a letter to the head of the International Monetary Fund on Monday to take action to stop negative economic impacts of the Covid-19 virus.

The letter urges expanded debt relief and aid to bolster health-care for developing countries impacted by the coronavirus. Additional letter recommendations include debt payment moratoriums, improved debt restructuring, encouraging public budget approval processes for countries and raising revenue by curbing corruption, tax evasion and tax avoidance.

Read Jubilee USA's Letter to IMF on COVID-19 here
###

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news outlet. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Won't Exist.

Please select a donation method:



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

Share This Article