A Little Update on the Work of Jubilee USA During the Covid-19 Pandemic

A little update on the work of Jubilee USA during the Covid-19 Pandemic

ACC Supports Jubilee USA

By Linda Young

A couple of weeks ago,  I had the opportunity to sit in on a live international discussion lead by Eric LeCompte, Executive Director, Jubilee USA Network. Panelists discussed  a real solution for helping developing low and middle income countries reeling under the economic effects of Covid-19.  In the past, solutions have been austerity, or loans from the World Bank or the IMF.  Under current circumstances, more debt is the last thing these countries need.  How could they ever gain the funds to pay back the debt?

The proposal:  Appealing to the G20 and the IMF to allow these countries to draw on the Global emergency funds which exist – and have been expressly set up for a crisis just such as this.  That would mean the use of SDR’s, Special Drawing Rights. SDR’s are international reserve assets – in practice, a global currency created by the IMF.  SDR’s can be exchanged for Currency such as dollars.  The fee for their use: 5 hundredths of 1%. The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. SDR’s can be exchanged for currencies.

For further reading

The panel consisted of:   Andres Arauz, former Director of the Central Bank of Ecuador,

Patricia Miranda, Global Advocacy Director, Latindadd

Jean Saldanha, Executive Director, Eurodad

Matthew Martin, Advisor of OIF Finance Ministers and Director of Development Finance International

Info on SDR’s

https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR

G20 meetings

https://www.jubileeusa.org/pr_world_leaders_meet_to_tackle_covid_debt_and_development_crises

Eric LeCompte from Jubilee USA speaks to the UN

https://www.jubileeusa.org/lecompte_remarks_un_financing_covid